US Dollar turns positive above 98.50

The greenback, tracked by the US Dollar Index,  has recovered the positive territory on Thursday after a brief test of daily lows in the 98.30 area.

US Dollar focus on data, Trump

The index is looking to advance further north of the 98.00 handle following yesterday’s strong bounce off Trump-led drop to sub-96.00 levels.

In fact, despite the sharp sell-off seen early on Wednesday, USD has managed to not only recover the ground lost, but also close the day with gains after investors perceived Trump’s victory as ‘market-friendly’, at least for now.

In the meantime, markets remains wary of the potential implications for the US economy and the buck of Donald Trump becoming new US President, especially with regard to the Federal Reserve and its likely rate hike next month.

In the US data space, only Initial Claims are due ahead of the speech by St. Louis Fed J.Bullard (voter, centrist), all ahead of tomorrow’s Consumer Sentiment gauge by the Reuters/Michigan index.

US Dollar relevant levels

The index is gaining 0.06% at 98.56 facing the immediate hurdle at 99.09 (high Oct.25) followed by 99.95 (high Jan.21) and then 100.60 (high Dec.3). On the flip side, a breakdown of 96.94 (low Nov.4) would target 95.91 (low Nov.9) en route to 95.81 (200-day sma).