US Dollar bounces off lows, looks to retake 101.50

The greenback – in terms of the US Dollar Index (DXY) – remains well on the defensive today, managing to rebound from daily troughs near 101.20.

US Dollar now looks to ISM

Despite the current leg lower, the index manages so far to keep the trade above the 101.00 barrier, amidst choppy trade and a pick up in the risk-on trade following the recent deal clinched by OPEC members at the meeting in Vienna on Wednesday.

The broader picture remains USD-supportive nonetheless, as the Federal Reserve is expected to tighten its monetary conditions via a rate hike next month, while reflation prospects under the Trump’s administration has been propped up further after the recent deal to limit the oil production.

On the US data front, the usual report on the labour market is due followed by key reports on the manufacturing sector from Markit and the ISM. Cleveland Fed L.Mester (voter, hawkish) is also due to speak.

US Dollar relevant levels

The index is retreating 0.22% at 101.41 facing the next support at 100.67 (low Nov.28) followed by 100.23 (20-day sma) and finally 99.38 (low Nov.14). On the other hand, a break above 102.19 (monthly high Apr.2003) would open the door to 102.68 (monthly high March 2003).