US Dollar leaps to daily highs near 97.00

The US Dollar Index – which measures the buck vs. its main rivals – has suddenly regained buying interest and advanced to the area of session tops near the critical 97.00 barrier.

US Dollar focus is now on Comey

The index has quickly climbed to fresh 2-day tops near the 97.00 handle after the ECB is said to cut its inflation outlook through 2019, while it could raise the GDP outlook by around 0.1% for the same period.

The ECB headlines hurt the EUR/USD’s upside, as the likeliness of a potential taper of the current bond-buying programme and/or rate hikes in the medium to longer run now appear diminished.

Back to the US, the weekly report on US crude oil inventories by the EIA is only due later in the NA session ahead of tomorrow’s key testimony by former FBI Director James Comey before the Senate Intelligence Committee.

US Dollar relevant levels

The index is up 0.35% at 96.84 and a breakout of 96.94 (high Jun.7) would open the door to 97.27 (high Jun.1) and then 97.43 (20-day sma). On the flip side, the immediate support aligns at 96.47 (2017 low Jun.6) followed by 95.91 (low Nov.9 2016) and then 94.95 (low Sep.22 2016).