USD Index climbs to multi-day highs around 107.60

• The index adds to the rebound past the 107.00 mark.
• US yields extend the march north amidst recent hawkish Fedspeak.
• The Chicago Fed Index will be the sole release later in the NA docket.

The greenback, in terms of the USD Index (DXY), extends the move higher and advances to new multi-day peaks well north of 107.00 the figure at the beginning of the week.

USD Index bolstered by Fedspeak, looks to FOMC Minutes

The index posts gains for the third session in a row on Monday and manages to extend further the recent breakout of the 107.00 barrier, always sustained by the renewed bounce in US yields and hawkish comments from Fed’s rate setters.

Indeed, both the dollar and yields saw their upside reinvigorated in response to recent comments from FOMC’s Waller, Bullard and Collins, which at the same time poured cold water over the potential emergence of pivot in the Fed’s policy in the relatively near term.

Later in the US data space, the Chicago Fed National Activity Index will be the only scheduled release on Monday, whereas investors’ attention is expected to be on the publication of the FOMC Minutes of the November event on Wednesday.

What to look for around USD

The dollar remains well bid and pushes the index well past the 107.00 hurdle at the beginning of the week.

While hawkish Fedspeak maintains the Fed’s pivot narrative in the freezer, upcoming results in US fundamentals would likely play a key role in determining the chances of a slower pace of the Fed’s normalization process in the short term.

Key events in the US this week: Chicago Fed National Activity Index (Monday) – MBA Mortgages Applications, Building Permits, Durable Goods Orders, Initial Jobless Claims, Flash Manufacturing/Services PMIs, Final Michigan Consumer Sentiment, New Home Sales, FOMC Minutes (Wednesday).

Eminent issues on the back boiler: Hard/soft/softish? landing of the US economy. Prospects for further rate hikes by the Federal Reserve vs. speculation of a recession in the next months. Fed’s pivot. Geopolitical effervescence vs. Russia and China. US-China persistent trade conflict.

USD Index relevant levels

Now, the index is gaining 0.55% at 107.56 and faces the next up barrier at at 109.18 (100-day SMA) seconded by 110.73 (55-day SMA) and then 113.14 (monthly high November 3). On the other hand, the breakdown of 105.34 (monthly low November 15) would open the door to 105.11 (200-day SMA) and finally 104.63 (monthly low August 10).