US Dollar firmer, advances through 102.00

The US Dollar Index – which measures the buck vs. a trade-weighed basket of its main rivals  - keeps the bullish stance intact today, currently testing the 102.10/15 band.

US Dollar up on hike bets, data

The greenback has been boosted further on Wednesday after US ADP report came in well above expectations in February, showing the private sector added nearly 300K jobs in February. The data lent extra oxygen to hopes of a positive surprise at tomorrow’s Payrolls (190K exp.) and added extra legs to USD-rally.

In the meantime, the index stays well underpinned by the rising probability of a rate hike by the Fed next week. Currently, Reuters’s Fedwatch noted the probability of a 25 bp raise is almost at 90% based on Fed Funds futures prices.

Yields in the US money markets keep the firm fashion and have advanced to multi-day tops, adding extra sustainability to the buck’s up move.

DXY has managed to regain the 102.00 barrier and above in this favourable context, while traders now look with more optimism the release of February’s Non-farm Payrolls (Friday).

Later in the NA session, Initial Claims are only due along with Export/Import Prices.

US Dollar relevant levels

The index is gaining 0.11% at 102.22 facing the next up barrier at 102.82 (78.6% Fibo of the 2017 drop) ahead of 103.62 (high Dec.20 2016) and then 103.81 (2017 high Jan.3). On the flip side, a break below 101.70 (low Mar.8) would open the door to 101.52 (low Mar.7) and finally 101.33 (20-day sma).