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USD Index extends the upside north of 102.00 ahead of ISM

  • The index picks up extra pace after another solid NFP print.
  • The US labour market shows no signs of weakness so far.
  • The US economy added far more jobs than predicted.

The greenback adds to the optimism seen in the second half of the week and lifts the USD Index (DXY) back above the 102.00 hurdle on Friday.

USD Index in multi-session tops

The index climbed further and flirted with the area of recent peaks around 102.60 soon after another stellar prints from the US labour markets. The bull run, however, fizzled out somewhat afterwards.

In fact, the US economy almost tripled the expected job creation in January at 517K jobs vs. 185K estimated, while the jobless rate unexpectedly retreated to 3.4%. Further positive results came from the 4.4% yearly increase in Average Hourly Earnings.

Following Friday’s price action, the dollar remains en route to close the first week with gains after three consecutive pullbacks.

Later in the NA session comes the ISM Non-Manufacturing also for the month of January.

USD Index relevant levels

Now, the index is gaining 0.65% at 102.39 and faces the next up barrier at 102.63 (weekly high February 3) seconded by 102.89 (January 18) and then 103.94 (55-day SMA). On the downside, the breach of 100.82 (2023 low February 2) would open the door to 100.00 (psychological level) and finally 99.81 (weekly low April 21 2022).

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Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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