The greenback, in terms of the US Dollar Index, has almost fully recovered the initial pullback, currently hovering over the mid-101.00s. The index has once again found strong support in the 100.70 band, and has not only retaken the 101.00 mark but also advanced to the area of 101.50, testing the positive territory for the time being.
The broader picture around the dollar remains unchanged so far, with expectations of a rate hike in December still sustaining sentiment, albeit market participants should have already priced in the event.
Upcoming Fedspeak could be more indicative of the future of the buck beyond the probable higher rates in December, while the prospects of higher inflation and solid performance of US yields should add to the case of a stronger USD.
The index is down 0.01% at 101.47 and a breakdown of 100.64 (low Nov.25) would open the door to 99.38 (low Nov.14) and finally 99.63 (20-day sma). On the other hand, the next hurdle lines up at 102.19 (monthly high Apr.2003) ahead of 102.68 (monthly high March 2003).