US Dollar firmer, stays close to 100.00

The bid tone around the buck remains well and sound on Thursday, taking the US Dollar Index (DXY) to the vicinity of multi-day highs around the critical 100.00 handle.

US Dollar bid after data, Fedspeak

The index has extended the upside momentum today, briefly testing peaks above the 100.00 limestone, where it is now looking to consolidate.

The upside bias around USD was also bolstered today after the third revision of US GDP showed the economy has expanded at an annualized 2.1% from 1.9% previous.

In addition, Cleveland Fed L.Mester (2018 voter, hawkish) said earlier that sustaining expansion will need more interest rates while she argued that the Federal Reserve should start shrinking its balance sheet this year. Her comments add to yesterday’s hawkish message by Boston Fed E.Rosengren, who advocated for four rate hikes as long as the economy accompanies.

US Dollar relevant levels

The index is up 0.17% at 99.95 and a break above 100.23 (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).