US Dollar Leaps to Highs Near 95.50
The US Dollar Index, which tracks the greenback vs. its
main rivals, has quickly reverted initial losses and is now testing
daily peaks in the mid-95.00s.
US Dollar bid post-US data, Fed
The greenback has gathered further traction after US Existing Home Sales
have surpassed estimates during April, gaining 1.7% to 5.45 million
units.
USD remains on a firm fashion, closing its third week with gains after
bottoming out in the 91.90 area in early May. The move remains largely
propped up by recent hawkish comments by FOMC governors, supportive FOMC
minutes on Wednesday and a string of solid results from the US docket,
all reinforcing the idea of a potential rate hike by the Fed at its
meeting next month.
That said, and according to CME Group’s FedWatch tool, the probability
of a 25bp rate hike in June remains at 30%, up from below the 5% seen
last Monday.
US Dollar relevant levels
The index is gaining 0.14% at 95.42 and a break above 95.51 (high May
19) would target 96.30 (100-day sma) en route to 96.42 (high Mar.28). On
the other hand, the immediate support aligns at 94.87 (55-day sma)
followed by 94.13 (20-day sma) and finally 93.65 (low May 11).
