The United States Dollar Index tested highs at 96.67 on Monday. The index was gathering strength following fresh concerns around EUR from the German political scenario, where German Chancellor Merkel's governing coalition suffered heavy losses in a regional election in the state of Hesse on Sunday.
The US Dollar rose towards a 10-week high on Monday as concerns about global growth continue. On top of that, the tariff negotiations between the United States and China have also lifted the dollar. The market has assumed that while the US economy will be hit by reduced trade, it will be hurt less than its trading partners.
In the economic calendar, the USD Personal Consumption Expenditure Core (YoY) September at 2.0% vs 2.0% reading, the USD Personal Income (September) at 0.2% vs 0.4% and the USD Personal Spending (September) at 0.4% vs 0.4% reading, are helping to keep the bid in the US Dollar, as long as there is a continuation of strong U.S. data.
We see US Dollar Index is well supported at the 96.29 level in the near term while topside moves are expected to meet resistance at the 96.80.