- The DXY remains well bid in the 100.50 region on Thursday.
- President Trump’s comments gave additional support to the ball.
- Initial US requests increased at a weekly rate of 2,901 million.
The US dollar index ((DXY), which assesses the greenback against a group of its main rivals, remains well bid Thursday around the 100.50 zone.
US dollar index sets sail at 101.00
The index rose for the second consecutive session on Thursday, extending the movement to the area above the key barrier near 100.50 and at the same time printing new 3-week peaks.
In fact, the dollar with additional buying pressure recently after the Fed’s J. Powell reiterated that the Fed is not considering negative rates yet, while President Trump’s positive comments on the strength of the dollar also collaborated with the optimistic mood of the index.
Turning to the data, key initial claims continued the downward trend on Thursday, increasing by almost 3 million US citizens over the past week. According to ongoing claims, almost 23 million citizens now benefit from unemployment insurance benefits.
What to Look for around the USD
The greenback is maintaining good buying interest so far this week in the context of a generalized consolidation mode on the world markets. In the meantime, the US-China trade war and the gradual reopening of the US economy continue to be at the center of the debate among investors. Supporting the momentum surrounding the greenback is emerging the current environment of “flight to security”, helped by its status as “world reserve currency” and store of value. On another front, and following the FOMC event, the fed is expected to lag behind the stance of monetary policy, at least until the coronavirus crisis subsides.
Relevant levels of the US dollar index
Currently, the index is gaining 0.31% to 100.51 and a break above 100.93 (weekly / monthly high on April 6) would open the door to 101.34 (monthly high April 10, 2017) and finally to 102.25 (monthly high of March 9, 2017). ). On the other hand, the next support stands at 98.57 (weekly low on May 4) followed by 98.42 (200 day SMA) then 97.87 (61.8% Fibo from the 2017-2018 decrease).