US Dollar firmer, prints fresh highs around 96.80

The greenback, tracked by the US Dollar Index, has recovered the smile on Monday and is now advancing to the upper end of the range near 96.80.

US Dollar on its way to 97.00?

The index is advancing for the third week in a row today, propped up by increasing expectations of a rate hike by the Federal Reserve at its December meeting and a generalized selling bias around the risk-associated universe.

Market participants seem to have already digested last Friday’s lower-than-expected Non-farm Payrolls (156K), reverting the recent pullback and thus keeping the ongoing rally well and sound.

On the positioning front and according to the latest CFTC report, speculative USD net longs have dropped to the lowest level since June 21 during the week ended on October 4.

Looking ahead, Tuesday’s calendar in the US economy will bring the Fed’s Labor Market Conditions Index, the NFIB’s index and the speech by Minneapolis Fed N.Kashkari (2017 voter, neutral).

US Dollar relevant levels

The index is advancing 0.19% at 96.82 and a break above 97.62 (high Jul.25) would open the door to 98.59 (high Mar.3) and then 99.95 (high Jan.21). On the downside, the initial support aligns at 95.91 (200-day sma) ahead of 95.11 (support line off 2016 low) and finally 94.44 (low Sep.8).