US Dollar advances to session tops near 101.50

The greenback - tracked by the US Dollar Index - keeps the firm note on Tuesday, currently clinching session tops in the mid-101.00s.

US Dollar firm ahead of FOMC

The index is posting gains for the second session in a row, recovering part of the ground lost after Friday’s sell-off and extending the bounce off yesterday’s multi-day lows near 100.80.

The buck remains well underpinned by expectations of a Fed move at tomorrow’s meeting, with the probability of a 25 rate hike above 90% according to CME Group’s FedWatch tool.

Yields in the US money markets stay supportive of further tightening by the Committee on Wednesday, keeping the area of recent 2017 highs and in turn lending extra legs to the buck.

In the US data space, February’s Producer Prices are due later along with the NFIB index.

US Dollar relevant levels

The index is gaining 0.19% at 101.45 and a breakout of 101.98 (high Mar.10) would open the door to 102.05 (61.8% of the 2017 drop) and then 102.27 (high Mar.2). On the other hand, the next support aligns at 100.86 (low Mar.13) followed by 100.83 (100-day sma) and finally 100.64 (low Feb.24).