US Dollar firmer, challenges the 99.00 handle

The greenback – in terms of the US Dollar Index – continues its march north post-Trump’s win on Thursday, keeping the trade off highs above the 99.00 handle.

US Dollar bolstered by Fed, yields

Yields in the US money markets remain on the rise following the results from the US elections, lending extra support to the buck and pushing the index briefly above the 99.00 mark to test October’s top.

In the US data space, Initial Claims have come in at 254K WoW, a tad better than initially estimated. In another event, St. Louis Fed J.Bullard advocated for policy rates to remain exceptionally low, adding that lower productivity is weighing on growth. Regarding the recent election results, he noted that the US will not have a divided government while he suggested that volatility post-Trump’s victory is not at worrisome levels.

Looking ahead, FOMC’s S.Fischer (permanent voter, hawkish) is due to speak tomorrow ahead of the release of the preliminary gauge of US Consumer Sentiment for the month of November.

US Dollar relevant levels

The index is gaining 0.34% at 98.84 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).

To learn more about this topic, check our video analysis: