US Dollar finds support near 97.00 ahead of US data

The greenback, gauged by the US Dollar Index, has trimmed earlier losses and is now managing to retake the 97.30 area.

US Dollar attention to data

In spite of the ongoing rebound from daily lows, the sentiment around the buck has taken a hit following the events on the US political arena, where the scenario pre-elections remains everything but clear.

The index has been in almost a free-fall since last week’s 9-month peaks just above the 99.00 limestone, as the Clinton-FBI issue and the subsequent pick up in the vote intention around Republican candidate D.Trump has been undermining the upside potential around USD.

In addition, the FOMC has reiterated yesterday its ‘data-dependent’ stance regarding the timing of a potential rate hike, while the Committee stressed that the case for higher rates ‘has continued to strengthen’. Markets’ bets keep pointing to a ‘dovish hike’ by the Federal Reserve by year-end, with markets already pricing in such event at around 70%.

On the US data front, the Service sector will be in the limelight as Markit and the ISM will publish their gauges along with Initial Claims and September’s Factory Orders.

US Dollar relevant levels

The index is losing 0.08% at 97.31 facing the next support at 96.37 (55-day sma) followed by 95.83 (200-day sma) and finally 95.56 (6-month support line). On the upside, a breakout of 99.09 (high Oct.25) would aim for 99.95 (high Jan.21) and then 100.60 (high Dec.3).