Dollar index rises after OPEC deal, approaches 2016 highs

The US Dollar index, which gauges the US dollar against its main competitors, is about to end with a gain of 0.60% on the day of the formal agreement of OPEC members to cut crude oil output. 

Greenback was boosted by US economic data and particularly the ADP employment report that surpass expectations significantly, by showing jobs gains in November in the private sector of 216K (against 160K expected). Traders now await the key NFP report, to be released on Friday. Many analysts consider that the impact is likely to be limited and won’t stop the Federal Reserve from raising rates in December. Fed's Mester mentioned that a rate hike would be a prudent step. 

Also rising US bond yields helped the Greenback. The 10-year yield printed fresh highs for the year at 2.39%. In Wall Street, the Dow Jones, up 0.37% was headed for another record close. The Nasdaq was falling 0.68%. 

The key event of the day was the OPEC agreement that triggered a rally in crude oil prices. The WTI gained 8% and climbed to $49.00. Despite the rally, commodity currencies pulled back against the US dollar. Gold was also affected by a stronger US dollar and fell to test last week lows near $1170. 

Oil rallies 9% on OPEC accord to cut production finally reached, confirmed by Al-Sada

DXY Technical levels 

Today the US dollar index peaked at 101.83, the strongest level since last Friday. It was hovering around 101.50, consolidating near 13-highs that reached last week above 102.00. 

To the upside, resistance could be seen at 101.80/85 (daily high), 102.05 (Nov 24 high) and 102.20 (Apr 2003 high). On the flip side, support levels might lie 100.85 (Nov 29 & 30 low), 100.60 (Nov 22 & 28 low) and 99.95 (Nov 17 low).