US Dollar picks up extra pace, 101.00 on sight

The greenback – gauged by the US Dollar Index – is extending its weekly rebound on Friday, currently testing daily tops in the 100.70/80 region.

US Dollar attention to data

The index is advancing for the second session in a row so far today, bouncing off weekly lows around 99.80 and already trading at shouting distance from the key barrier at 101.00 the figure.

The recent sharp sell-off to sub-100.00 levels encouraged dip-buyers to step in, pushing the buck to current levels and adding to the idea that the recent leg lower could be over. The renewed upside has been reinforced by a strong rebound in US yields, as the reflation trade seems to ha re-emerged.

Later in the NA session, December’s Durable Goods Orders, advanced Q4 GDP figures and the final print of the Reuters/Michigan Index for the month of January are all due.

Another focus will be on the meeting between President D.Trump and UK’s PM T.May, with the main topic being a potential trade deal.

US Dollar relevant levels

The index is gaining 0.27% at 100.79 and a breakout of 101.30 (20-day sma) would target 101.42 (55-day sma) en route to 101.71 (high Jan.19). On the downside, the immediate support aligns at 99.77 (low Jan.26) followed by 99.49 (low Dec.8) and then 99.36 (100-day sma).