US Dollar pushes higher, closer to 95.60

The US Dollar Index, which tracks the buck against a basket of its main rivals, is now intensifying its upside and approaching the 95.60 area, session highs.

US Dollar boosted by rate hike bets

The greenback has picked up extra pace after Boston Fed E.Rosengren (voter, dovish) argued that a gradual tightening of the Fed’s monetary conditions would be appropriate, boosting Fed Funds future prices and bets for a rate hike by the Federal Reserve in the next months.

In fact, and according to CME Group’s FedWatch tool, the probability of a rate hike by the Fed later this month has climbed to 33% from 18% earlier in the European morning, while it stays near 50% for the month of December.

Data wise in the US docket, Wholesale Inventories have come in flat on a monthly basis during July, bettering expectations for a 0.1% gain.

US Dollar relevant levels

The index is gaining 0.52% at 95.52 and a break above the 55-day sma at 95.88 would target 96.18 (200-day sma) en route to 96.35 (high Aug.31). On the downside, the next support lines up at 94.05 (low Aug.18) followed by 93.03 (low Jun.23) and the 91.88 (2016 low May 3).