Dollar index tries for another attempt to hold a firm break above the 95.00 handle
Resistance is seen at the October high @ 95.150 for the dollar index, and that will be a key level for buyers to breach if we are to see accelerated momentum in the dollar (and likely downside in EUR/USD).
The key catalyst pushing the dollar index higher today has been the continued fall in the euro and sterling - with the former playing a bigger role. EUR/USD has slipped to a low of 1.1566 on the session, as German politics will be a key fundamental catalyst in driving the euro lower (or at least not letting it rally) over the next few sessions.
Merkel needs to find a way to strike a deal with Germany's EU partners over asylum policy, but the latest news is that her own party members don't appear to believe that they will be able to meet the extended deadline on the matter.
Add in a couple more headlines like that, and investors will start growing nervous of a collapse in the German coalition government which hasn't even lasted for 100 days yet.
So far, trading has been relatively quiet with little else of note. It'll be all about the ebb and flow today so headlines will be one of the things that market participants may look towards to drive price action.
