- DXY returns to the 100.00 and over mark on Thursday.
- On Wednesday, Fed Powell ruled out negative rates.
- The initial US weekly claims will be in the spotlight later in the session.
The greenback, in terms of US dollar index ((DXY), resumed the upside and returned to the 100.00 mark after a brief test of the 99.60 / 55 band on Wednesday.
US dollar index now looks at data
On Wednesday, after a dip test around 99.60, the index managed to regain its composure and progress again above the key level at 100.00.
Dollar seems to be bidding after chief Jerome Powell reiterated that the Federal Reserve did not plan to cut rates below zero in his testimony on Wednesday, when he insisted that “more must be done “in the current coronavirus crisis. Meanwhile, several American states are continuing their plans to reopen the economy, still at a gradual pace.
In the data world of the United States, the initial weekly demands will take center stage later in the NA session, supported by the speech by Fed N. Kashkari of Minneapolis (voter, dovish).
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
For the moment, the index is gaining 0.11% to 100.31 and a break above 100.44 (weekly high of May 12) would open the door to 100.49 (78.6% of Fibo of the 2017-2018 decrease) and finally to 100.93 (highest weekly / monthly in April). 6). 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).