US Dollar climbs to highs around 97.20

The greenback, tracked by the US Dollar index, is extending its weekly rally above the key barrier at 97.00 the figure.

US Dollar in 3-month tops

The index has managed to revert Friday’s pullback following lower-than-expected Payrolls figures (156K) and it has started the week on a firmer note, retaking the key handle at 97.00 and advancing to levels last seen in late July around 97.20.

USD is deriving extra support from growing expectations of a Fed’s rate hike in December. Despite Friday’s results from Non-farm Payrolls, the US labour market continues to give signs of very good health and keeps pointing investors to higher rates by end of 2016.

In addition, Chicago Fed C.Evans expects monetary policy to change soon, although he has also advocated for a gradual tightening.

Later in the NA session and with US markets back to normalcy, the NFIB index is due ahead of the Fed’s Labor Market Conditions Index and the speech by Minneapolis Fed N.Kashkari, (2017 voter, neutral).

US Dollar relevant levels

The index is advancing 0.29% at 97.21 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 95.90 (200-day sma) ahead of 95.12 (support line off 2016 low) and finally 94.44 (low Sep.8).