- DXY stays well bid in the 100.50 region on Thursday.
- President Trump’s comments gave extra support to the buck.
- US Initial Claims rose at a weekly 2.901 million.
The US Dollar Index (DXY), which gauges the greenback vs. a bundle of its main rivals, remains well bid around the 100.50 area on Thursday.
US Dollar Index set sails to 101.00
The index is advancing for the second session in a row on Thursday, extending the move to the area above the key barrier near 100.50 and printing at the same time new 3-week peaks.
In fact, the dollar met extra buying pressure as of late after Fed’s J.Powell reiterated that the Fed is not considering negative rates for the time being, while President Trump’s positive comments on the dollar’s strength also collaborated with the upbeat mood in the index.
Data wise, key Initial Claims prolonged the downtrend on Thursday, rising by nearly 3 million American citizens during last week. As per Continuing Claims, nearly 23 million citizens are now under unemployment insurance benefits.
What to look for around USD
The greenback keeps the buying interest 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 0.31% at 100.51 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 98.57 (weekly low May 4) followed by 98.42 (200-day SMA) and then 97.87 (61.8% Fibo of the 2017-2018 drop).
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