US Dollar bounces off lows, looks to regain 98.70

The greenback, measured by the US Dollar Index, is losing further ground today towards the mid-98.00s, or session lows.

US Dollar offered post-data

The index retreated further after October’s final reading of US Consumer Sentiment has come in below expectations at 87.2 vs. 88.1 forecasted and down from September’s 87.9.

Previously, advanced GDP figures showed the US economy is expected to expand at an annualized 2.9% during the third quarter, surpassing consensus. Further results saw the Employment Costs Index matching estimates at 0.6% during the July-September period.

In the meantime, yields in the US money markets haver deflated from daily tops although they manage to stay around the area of multi-month peaks, keeping the support for the buck intact.

Despite the correction lower, DXY is netting another weekly close with gains – including a 9-month fresh top beyond the 99.00 handle – extending the positive streak to the fifth week and always sustained by growing expectations of a Fed’s rate hike by year-end.

US Dollar relevant levels

The index is losing 0.17% at 98.72 and a breakdown of 98.31 (low Oct.26) would aim for 97.69 (20-day sma) and finally 95.86 (200-day sma). On the other hand, the next hurdle is located at 99.09 (high Oct.25) followed by 99.95 (high Jan.21) and then 100.60 (high Dec.3).