US Dollar pushes higher to weekly tops above 97.50

After refreshing its weekly high at 97.55, the US Dollar Index, which tracks the greenback against a basket of six trade-weighted peers, eased to 97.40 but gathered momentum again, pushing higher toward its recent top. As of writing, the index is at 97.52, up 0.63% on the day.

Following the initial upsurge witnessed post-FOMC meeting yesterday, the index spent the Asian session consolidating near the 97 mark. However, as the European traders hit their desks, another USD buying wave came into the markets. Later in the day, positive data from the U.S. provided an additional boost to the index. In the week ending June 10, the initial claims came in at 237,000, 8,000 lower from the previous week, and the headline general business conditions index released by the Federal Reserve Bank of New York increased twenty-one points to 19.8, its highest level in more than two years.

• US: Weekly initial claims was 237,000, a decrease of 8,000 from the previous week
• US: Import prices fall 0.3% in May, led by lower fuel prices; export prices decline 0.7%
• NY Fed: Business activity rebounded strongly

Tomorrow's economic calendar will feature Building Permits and Housing Starts from the U.S. but unless the numbers are too far off from the market consensus, they shouldn't be able to change the general market mood, which has been favoring the greenback since yesterday's NA session.

• More thoughts about the Fed and dollar - BBH

Technical outlook

With a daily close above 97.50/55 (May 26 high/daily high), the index could aim for 98 (May 18 high/psychological level), 98.75 (May 16 high) and 99.55 (May 9 high). The former resistance at 97 is now the initial support ahead of 96.30 (Jun. 14 low) and 95.90 (Nov. 11 low).