Is the Dollar Index About to Reach a New Cyclical High?

US dollar index is higher today, thanks in large part to the continued struggles of the euro. With the dollar index above 100, many are looking to see if it reaches the highs seen last March.

There is a lot ahead this week, and much of it could have an impact on the performance of the US dollar and the dollar index. The ECB is meeting this coming week, and expectations for more stimulus could mean a bigger drive for parity between the euro and the greenback.

Additionally, many Forex traders are also considering the coming OPEC meeting, as decisions made by the oil cartel could also impact the FX market as we move into year-end.

Even with the recent disappointment related to the industrial production in October, many still expect the Fed to raise rates in December, with another rate hike coming toward the end of the first quarter of 2016. This points to likely gains for the US dollar index, possibly pushing it toward new highs.

At 15:39 GMT the US dollar index is up to 100.180 from the open at 100.070. EUR/USD is down to 1.0575 from the open at 1.0589. GBP/USD is up to 1.5047 from the open at 1.5033. USD/JPY is up to 123.0800 from the open at 122.8230.

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