US Dollar Index pushes higher and approaches 92.70 ahead of Payrolls


  • DXY trades in levels last seen in April near 92.70.
  • The risk-off mood continues to bolster the demand for the dollar.
  • June’s Nonfarm Payrolls, Unemployment Rate take centre stage later.

The US Dollar Index (DXY), which gauges the greenback vs. a bundle of its main competitors, remains well bid and reaches new tops in the 92.70 area on Friday.

US Dollar Index focused on NFP

The index extends the positive streak for yet another session at the end of the week and trades in new multi-month highs ahead of the release of the key Nonfarm Payrolls for the month of June.

Indeed, better-than-expected results from the ADP report and Initial Claims earlier in the week seem to have lifted even further the optimism ahead of the NFP, propping up the sentiment around the buck at the same time.

A positive outcome at the June’s Payrolls could add to the ongoing debate regarding the timing of the tapering talk by the Federal Reserve, which could be earlier than initially anticipated.

Later in the US data space, consensus sees the economy adding 700K jobs in June and the jobless rate ticking lower to 5.7% in the same period. In addition, Factory Orders are expected to have expanded at a monthly 1.6% during May.

What to look for around USD

The index manages to clinch new highs in the 92.70 region and remains poised to extend the uptrend in the short-term horizon. The recent investors’ shift in the sentiment around the dollar seems justified by the pick-up in risk aversion on the back of pandemic concerns, strong fundamentals, high inflation and tapering prospects. In addition, the likeliness that the Fed could modify the bond-purchase programme before anyone had anticipated and a potential rate hike in H2 2022 have been collaborating with the change of heart in the dollar as of late and particularly after the latest FOMC event.

Key events in the US this week: Nonfarm Payrolls, Unemployment Rate, Balance of Trade, Factory Orders (Friday).

Eminent issues on the back boiler: Biden’s plans to support infrastructure and families, worth nearly $6 trillion. US-China trade conflict under the Biden’s administration. Tapering speculation vs. economic recovery. US real interest rates vs. Europe. Could US fiscal stimulus lead to overheating?

US Dollar Index relevant levels

Now, the index is gaining 0.16% at 92.67 and a breakout of 92.69 (weekly high Jul.1) would open the door to 93.00 (round level) and finally 93.43 (2021 high Mar.21). On the downside, initial contention emerges at 91.51 (weekly low Jun.23) followed by 91.43 (200-day SMA) and finally 89.53 (monthly low May 25).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Bulls knock the door ahead of Fed

EUR/USD struggles to extend two-day uptrend, sidelined of late. The major currency pair rose for the second consecutive day on Tuesday while confirming the falling wedge bullish formation on the daily chart.

EUR/USD News

GBP/USD rebounds toward 1.3900 as USD weakens

GBP/USD extends the previous two day’s gains in Wednesday’s Asian session. The pair trades in a very narrow trade band and awaits for confirmation. US dollar trades below 93.00 ahead of the FOMC meeting. The sterling gains on the sharp decline in coronavirus infections.

GBP/USD News

EUR/USD: Bulls knock the door ahead of Fed

EUR/USD struggles to extend two-day uptrend, sidelined of late. The major currency pair rose for the second consecutive day on Tuesday while confirming the falling wedge bullish formation on the daily chart.

EUR/USD News

Three reasons why Cardano could rally 60%

Cardano price triggers a large symmetrical triangle pattern with yesterday’s close above the upper trend line. ADA/BTC is nearing a critical support level with the intra-day Relative Strength Indexes (RSI) flashing a bullish momentum divergence.

Read more

Fed Interest Rate Decision Preview: The horns of a inflation dilemma

No change in rate policy or bond purchases expected. US economy appears to be slowing under labor, supply chain shortages. Treasury curve has flattened, inflation has jumped since the June 16 FOMC. Dollar has gained against most majors since mid-June.

Read more

Forex MAJORS

Cryptocurrencies

Signatures