US Dollar moves to session highs near 97.70

The greenback, in terms of the US Dollar Index, is extending its upbeat tone to the area of daily tops near 97.70.

US Dollar attention to data

The index has started the session with a gap higher, so far advancing for the fourth straight session and currently flirting with multi-day peaks in the 97.70 area, closer to the key barrier at 98.00 the figure.

The increasing offered bias around the single currency and the Sterling is giving extra wings to the buck, which continues to put further distance from 6-month lows seen last week in the 96.70 region.

In addition, the likelihood of further tightening by the Federal Reserve at its June meeting continues to sustain the upbeat momentum around the greenback. In view of CME Group’s FedWatch tool, the probability of a rate hike next month stands at just above 84% based on Fed Funds futures prices.

Looking ahead and with US markets returning to normalcy, April’s inflation figures tracked by the PCE and personal income/spending are due followed by May’s consumer confidence gauged by the Conference Board and the speech by FOMC’s L.Brainard (permanent voter, centrist).

US Dollar relevant levels

The index is up 0.28% at 97.60 and a breakout of 98.01 (high May 17) would open the door to 98.14 (20-day sma) and finally 99.28 (200-day sma). On the downside, the next support is located at 96.70 (2017 low May 23) followed by 95.91 (low Nov.9 2016) and then 94.95 (low Sep.22 2016).