US Dollar gains altitude, around 95.80

FXStreet (Edinburgh) - The greenback, tracked by the US Dollar Index, remains on the rise on Wednesday, currently navigating the upper bound of the range in the 95.80/85 band.

US Dollar Index ignores US data

The upside momentum in the dollar is well and sound today in spite of US Factory Orders and the ADP Employment Report missing expectations. Headline Orders expanded 0.4% from June to July vs. 0.9% expected, while the US private sector created 190K jobs in August, less than the 201K anticipated.

USD keeps recovering the ground lost after last week’s sharp sell off dragged the index to multi-month lows in the mid-92.00s. Market probability of a Fed’s lift-off this month remains firm (around 50%) helped by supportive Fedspeak and solid GDP figures for the second quarter.

US Dollar levels to consider

At the moment the index is up 0.33% at 95.76 with the next hurdle at 95.89 (high Sep.1) followed by 96.57 (high Aug.20) and then 97.07 (high Aug.19). On the downside, a break below 95.19 (low Sep.1) would aim for 94.99 (low Aug.24) and finally 93.92 (low Aug.26).