US Dollar clings to gains around 97.00 ahead of NFP

The greenback, gauged by the US Dollar Index, remain on a firm footing on Friday, navigating the area of fresh highs around the 97.00 handle.

US Dollar eyes on Payrolls

The index is trading in levels last seen in August following quite a deteriorated scenario in the risk-associated space, particularly after the Sterling abruptly plunged to fresh +3-decade lows in sub-1.19 levels vs. the buck during overnight trade.

Auspicious results in the US docket as of late plus increasing bets on a Fed’s rate hike at the September meeting have been fuelling USD’s upside in recent sessions, which has managed to almost fully revert the drop from July’s peaks in the 97.60 area to the 94.00 neighbourhood seen in August.

Later in the session, USD will remain in the spotlight, as September’s Payrolls are due followed by speeches by FOMC’s S.Fischer, L.Mester and E.George. Market consensus sees the US economy to have created more than 170K jobs during last month, while the jobless rate is expected to remain unchanged at 4.9%.

US Dollar relevant levels

The index is advancing 0.28% at 97.03 and a break above 97.62 (high Jul.25) would open the door to 98.59 (high Mar.3) and then 99.95 (high Jan.21). On the downside, the initial support aligns at 95.92 (200-day sma) ahead of 95.04 (support line off 2016 low) and finally 94.44 (low Sep.8).