US Dollar climbs to over 1-week tops, sits comfortably above 97.00 mark
• Stronger core PPI figures helped regain positive traction.
• Positive US bond yields remain supportive of the up-move.
• The risk-on mood seemed to be the only factor capping gains.
The US Dollar Index (DXY) has managed to recover early lost ground and is currently placed at over one-week tops, comfortably above the 97.00 handle.
After spending the majority of Tuesday's trading session in negative territory, the greenback regained traction and picked up pace following the release of stronger than expected core PPI figures for November.
In fact, the index for final demand – excluding food, energy, and trade services, climbed 0.3% in November and 2.8% for the 12 months ended in November, while the headline PPI print matched consensus estimates.
Adding to this, a mildly positive tone around the US Treasury bond yields further underpinned the greenback demand and remained supportive of the intraday strong rebound.
Meanwhile, global risk appetite got a strong boost amid some renewed US-China trade optimism, which might dampen the buck's relative safe-haven status and turn out to be the only factor keeping a lid on any runaway rally.
According to a Bloomberg report, a proposal to reduce tariffs on cars made in the US to 15%, from the current 40%, has been submitted to China's Cabinet to be reviewed in the coming days and triggered a sharp rally across European/US equity markets.
Technical levels to watch
Dollar Index Spot
Today Last Price: 97.22
Today Daily change: 1.0 pips
Today Daily change %: 0.0103%
Today Daily Open: 97.21
Previous Daily SMA20: 96.88
Previous Daily SMA50: 96.41
Previous Daily SMA100: 95.74
Previous Daily SMA200: 94.1
Previous Daily High: 97.24
Previous Daily Low: 96.36
Previous Weekly High: 97.21
Previous Weekly Low: 96.37
Previous Monthly High: 97.7
Previous Monthly Low: 95.68
Previous Daily Fibonacci 38.2%: 96.9
Previous Daily Fibonacci 61.8%: 96.7
Previous Daily Pivot Point S1: 96.63
Previous Daily Pivot Point S2: 96.06
Previous Daily Pivot Point S3: 95.75
Previous Daily Pivot Point R1: 97.51
Previous Daily Pivot Point R2: 97.82
Previous Daily Pivot Point R3: 98.39