US Dollar in daily peaks near 93.70

The bid tone around the greenback seems to have taken root today, with the US Dollar Index now pushing higher to the 93.65/70 band, or session tops.

US Dollar bounces off 2017 lows

The index managed to grab some buying interest around the 93.00 handle, fresh YTD lows recorded during overnight trade (and last seen in May 2016, sparking at the same time the ongoing moderate rebound.

In addition, the demand for the buck seems to have found dip buyers around 93.00, as market participants were digesting yesterday’s (not-hawkish) FOMC message, although the broader picture for the buck appears gloomy in light of a potential more gradual rate path from the Federal Reserve and persistent uncertainty in the US political arena.

Regarding the likeliness of further tightening by the Fed, CME Group’s FedWatch tool sees the probability of another hike at the December 13 meeting at just below 47%, based on Fed Funds futures prices, while a raise at the September meeting has been practically ruled out by investors.

In the US data space today, June’s durable goods orders and trade balance figures surprised to the upside, while initial claims rose 244K on a weekly basis.

US Dollar relevant levels

The index is gaining 0.60% at 93.66 and a surpass of 94.09 (10-day sma) would open the door to 94.92 (21-day sma) and then 95.55 (23.6% Fibo of the 2017 drop). On the other hand, the next support emerges at 93.00 (2017 low Jul.27) seconded by 92.52 (low Aug.24 2015) and finally 91.88 (2016 low May 3).