US Dollar Index clings to gains near 100.30
|- DXY is looking to add to the weekly recovery in the 100.30 area.
- Investors keep tracking the gradual re-opening of the economy.
- Retail Sales, Empire State Index, Industrial Production, U-Mich all due later.
The greenback, when tracked by the US Dollar Index (DXY), keeps the weekly recovery well and sound beyond the key barrier at 100.00 the figure.
US Dollar Index focused on data
The index is advancing for the third consecutive session at the end of the week, managing well to keep business above the 100.00 ark and shedding some gains after hitting fresh 3-week highs near 100.60 on Thursday.
In the meantime, the dollar maintains the buying interest alive and always looking to the gradual re-opening of the US economy and developments from the coronavirus outbreak.
Moving forward, it will be an interesting day in the US docket: Retail Sales, Industrial Production, Capacity Utilization, the Empire State Index, the flash Consumer Sentiment, JOLTs Job Openings and TIC Flows.
What to look for around USD
The greenback keeps the bullish bias well and sound so far this week against the backdrop of a generalized consolidative fashion in the global markets. In the meantime, the US-China trade war and the gradual re-opening of the US economy continue to be in the centre of the debate among investors. Supporting the momentum around the greenback emerges the current “flight-to-safety” environment, helped by its status of “global reserve currency” and store of value. On another front, and following the FOMC event, the Fed is expected to stay on the loose end of the monetary policy stance, at least until the coronavirus crisis abates.
US Dollar Index relevant levels
At the moment, the index is gaining 0.04% at 100.31 and a break above 100.93 (weekly/monthly high Apr.6) would open the door to 101.34 (monthly high Apr.10 2017) and finally 102.25 (monthly high Mar.9 2017). On the other hand, the next support is located at 99.44 (55-day SMA) followed by 99.12 (weekly low May 11) and then 98.57 (monthly low May 4).
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