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  • The index keeps the bid tone beyond 97.00 the figure.
  • US 10-year yields move to daily highs beyond 3.07%.
  • US November CB’s Consumer Confidence at 135.7.

The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main competitors, keeps the positive territory so far this week and manages well to stay above the 97.00 handle for the time being.

US Dollar Index looks to trade, Europe

The recent pick up in US-China trade jitters has given extra legs to the upside in the buck, in turn pushing the index back above the critical 97.00 handle and opening at the same time the door for another potential test of 2018 peaks near 97.70.

The greenback stayed apathetic after FOMC’s VP R.Clarida said earlier in the day that the focus has now shifted to inflation expectations while he once again favoured the gradual approach on rate hikes.

In addition, at his speech, St. Louis Fed J.Bullard (2019 voter, dovish) noted rates are already at/near neutral levels, adding that he expects a slowdown in 2019 and 2020.

In the US calendar, house prices rose at an annualized non-seasonally-adjusted 5.1% in September, below market consensus. Further out, the final November gauge of Consumer Confidence by the Conference Board came in at 135.7 vs. 135.9 forecasted.

US Dollar Index relevant levels

As of writing the index is gaining 0.25% at 97.32 facing the next hurdle at 97.69 (2018 high Nov.12) seconded by 97.87 (61.8% Fibo retracement of the 2017-2018 drop) and then 99.89 (high May 11 2017). On the flip side, a break below 96.75 (21-day SMA) would open the door to 96.32 (low Nov.22) and finally 96.04 (low Nov.20).