US Dollar jumps to 102.00 neighborhood in tandem with rising bond yields

The greenback regained traction during early European session, lifting the key US Dollar Index back closer to the 102.00 handle.

The index extended its up-move from multi-day lows near 101.25 region, touched on Monday, and held in positive territory for the third consecutive session. Growing market consensus that the Fed would eventually move towards raising rates at its meeting on March 14-15 continues to underpin the greenback demand. 

Against the backdrop of Fed rate-hike expectations, a fresh leg of sharp up-move in the US treasury bond yields during early European session, across all maturities, has been supportive of the US Dollar's up-move in the past hour or so. 

Later during the NA session, ADP report on the US private sector employment, which is seen as a precursor to Friday's official jobs data (NFP), would now be looked upon for fresh bullish impetus to the index.

Levels to watch

Currently placed at 101.90 region, a follow through up-move beyond 102.00 handle has the potential to lift the index back to nearly two-month highs resistance near 102.27 level touched on March 2 with some intermediate resistance near 102.15 region (Friday's high).

On the downside, weakness below today's lows support near 101.70 region is likely to drag the index back towards mid-101.00s, en-route weekly lows support near 101.25-20 region.