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US Dollar Index firmer, regains 99.00 and above

  • DXY adds to Monday’s gains above the 99.00 mark.
  • US stocks advanced on rumours of extra easing.
  • US CB’s Consumer Confidence next of note in the docket.

The greenback, in terms of the US Dollar Index (DXY), has regained the 99.00 mark and above and keeps the bid tone unchanged for the second session in a row.

US Dollar Index looks to data, COVID-19

The index is extending the positive start of the week, retaking the key barrier at 99.00 the figure and managing to climb as high as the 99.60 area after losing some impetus.

The improved tone in the US markets benefited the dollar, lifted US yields – where the 10-year benchmark edged higher to 0.73% and beyond and encouraged equities to reverse Friday’s pullback and resume the upside, with both the S&P and DowJones gaining more than 3% at the beginning of the week.

Later in the NA session, house prices tracked by the S&P/Case-Shiller index are due seconded by JOLTs Job Openings and the more relevant Consumer Confidence gauged by the Conference Board.

What to look for around USD

DXY has regained the upper hand so far this week after bottoming out in the 98.30 region in past sessions. In addition, the greenback has so far managed to keep business above the key 200-day SMA and therefore maintaining the constructive outlook while re-targeting the triple-digit barrier. However, speculation of extra stimulus carries the potential to undermine the recovery in the buck and thus leaving the upside somewhat limited, all against the backdrop of unremitting concerns around the fallout of the coronavirus.

US Dollar Index relevant levels

At the moment, the index is gaining 0.33% at 99.47 and a breakout of 100.49 (78.6% Fibo retracement of the 2017-2018 drop) would expose 102.99 (2020 high Mar.20) and finally 103.65 (monthly high December 2016). On the other hand, the next support emerges at 98.27 (weekly low Mar.27) seconded by 98.01 (200-day SMA) and then 97.87 (61.8% Fibo retracement of the 2017-2018 drop).

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