US Dollar Index trades on a firm note and targets 100.00
|- DXY resumes the upside and looks to regain 100.00.
- Attention remains on the gradual opening of the economy.
- Chicago Fed Index only due later in the NA session.
The greenback, in terms of the US Dollar Index (DXY), has regained the positive territory and looks to reclaim de key barrier at 100.00 the figure.
US Dollar Index focused on coronavirus, data
The index is fading Friday’s pullback and resumes the upside at the beginning of the week amidst rising speculations (and scepticism) on the potential re-opening of the US economy on a gradual fashion, according to President Trump’s 3-phase plan unveiled last week.
In the calendar, the Chicago National Activity Index will be only due on Monday, while housing data, Initial Claims, advanced PMIs for the month of April, Durable Goods Orders and the final print of the Consumer Confidence are due later in the week.
What to look for around USD
Following Friday’s negative performance, DXY manages to reclaim some ground on Monday and is attempting to re-test the 100.00 neighbourhood. The recent recovery in the dollar came in response to the “fly-to-safety” environment, as investors continue to prefer the buck when comes to the safe haven universe. In the meantime, all the attention remains on the COVID-19 amidst countries extending their lockdown periods, speculation of a global recession and further deterioration of fundamentals. On the supportive side of the buck, its status of “global reserve currency” and store of value underpins its safe haven preference.
US Dollar Index relevant levels
At the moment, the index is gaining 0.16% at 99.87 and a break above 100.30 (weekly high Apr.16) would aim for 100.49 (78.6% Fibo retracement of the 2017-2018 drop) and then 100.93 (weekly/monthly high Apr.6). On the flip side, the next support emerges at 99.10 (55-day SMA) seconded by 98.82 (monthly low Apr.15) and finally 98.27 (weekly low Mar.27).
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