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US DOLLAR CONSOLIDATES NEAR THREE-MONTH HIGHS AHEAD OF US DATA

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  • US consolidates near three-month highs following a 3.5% rally in October.
  • US JOLTS Job Openings and Consumer Confidence data will be the main attractions.
  • The USD Index is on a bullish trend, with the 104.00 support area limiting downside attempts.

The US Dollar Index (DXY) consolidates near a three-month high in Tuesday’s early European session. The Greenback’s downside attempts remain limited, yet investors are wary of placing large US Dollar (USD) bets with key macroeconomic data releases ahead.

The focus on Tuesday will be on the US Consumer Confidence Index and the JOLTS Job Openings figures, which are expected to bolster the case of a solid US economy ahead of Wednesday’s Q3 GDP release.

The USD index, which measures the value of the US Dollar against the six main traded currencies, is on track to its best monthly performance in more than two years. Strong US data has forced markets to dial down expectations of a steep easing cycle by the Federal Reserve (Fed), pushing US yields higher and pushing the USD up with them.


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