US Dollar clings to gains near 93.50

The greenback, in terms of the US Dollar Index, has now deflated from daily highs although still manages to trade with gains in the 93.50 area.

US Dollar firmer post-jobs data

The index clinched fresh tops in the vicinity of 93.80 on Tuesday following auspicious results from US JOLTs Jobs Openings, reaching a record high at more than 6.1 million for the month of June.

The results sparked a sharp up move in the buck along with the usual speculations of a potential move from the Federal Reserve at some point in the next months. In fact, the idea that a strong (er) US labour market will eventually push wages higher and hence inflation could pave its way to the Fed’s target has been sustaining the up move as of late.

However, the probability of a rate hike at the December meeting has eased to 42.5% from just below 50% seen last month, according to CME Group’s FedWatch tool, showing that skepticism still persists among investors, removing some tailwinds from further upside in DXY.

On the US data front, weekly mortgage applications, advanced Q2’s non-farm productivity and unit labor costs are due later in the NA session ahead of the EIA’s report on US crude supplies.

US Dollar relevant levels

The index is gaining 0.03% at 93.51 and a break above 93.77 (high Aug.8) would aim for 93.83 (21-day sma) and then 94.11 (high Jul.26). On the flip side, the next support lines up at 93.16 (10-day sma) seconded by 93.12 *(low Aug.8) and finally 92.41 (2017 low Jul.31).