US Dollar firmer, flirting with 100.00

The greenback – when gauged by the US Dollar Index – is prolonging its weekly recovery to the vicinity of the psychological 100.00 handle on Thursday.

US Dollar bolstered by Fedspeak, eyes on data

The index is advancing since Tuesday, managing to rebound from Monday’s multi-month lows in the mid-98.00s, where dip-buyers seem to have turned up. USD found strong support in this area, defended as well by the proximity of both the key 200-day sma and the 10-month support line.

Robust US Consumer Confidence results in March (highest since December 2000) have added to the buck’s recovery along with the hawkish message from Fed speakers so far this week.

At his interview yesterday, (dove-turned-hawk) Boston Fed Eric Rosengren (2019 voter) advocated for four rate hikes this year as long as data stays strong. His comments fell in line with recent similar views by other FOMC peers, all collaborating with the renewed upside momentum in USD.

Later in the session, a third revision of US GDP for the October-December ’16 period is due followed by Initial Claims and speeches by New York Fed W.Dudley (permanent voter, centrist), Cleveland Fed L.Mester (2018 voter, hawkish), Dallas Fed R.Kaplan (voter, hawkish) and San Francisco Fed J.Williams (2018 voter, hawkish).

US Dollar relevant levels

The index is up 0.09% at 99.87 and a break above 99.99 (high Mar.30) would aim for 100.27 (high Mar.20) and then 100.52 (20-day sma). On the flip side, the next support aligns at 99.50 (low Mar.29) followed by 98.92 (low Mar.28) and finally 98.67 (low Mar.27).