- DXY keeps pushing higher and targets the 101.00 mark.
- Attention remains on the timing of the reopening of the economy.
- Durable Goods Orders, final April U-Mich index on the docket.
The greenback, in terms of the US Dollar Index (DXY), keeps its relentless march north at the end of the week with the immediate target at the 101.00 neighbourhood.
US Dollar Index focused on data, coronavirus
The index is advancing for the fifth consecutive session on Friday, gradually approaching the 101.00 mark amidst the persistent supportive tone bolstering the dollar’s performance.
In the meantime, investors are closely following news regarding the potential timing of the reopening of the economy, although this scenario is seen returning at a glacial pace and depending on the particular situation of every state.
In the meantime, the buck has practically ignored another sharp surge in weekly Claims on Thursday, this time by more than 4 million, and taking citizens who filed for unemployment insurance benefits to around 25 million in the last five weeks.
Later in the US, Durable Goods Orders for the month of March are due seconded by the final April gauge of the Consumer Sentiment.
What to look for around USD
The recovery in DXY remains unabated and eyes the next barrier at 101.00 the figure amidst the “fly-to-safety” environment, as investors continue to prefer the dollar to the rest of the safe haven universe. In the meantime, all the attention remains on the coronavirus developments against the backdrop of increasing efforts by the country to re-open the economy, albeit at a gradual fashion. Supporting further the dollar remains its status of “global reserve currency” and store of value.
US Dollar Index relevant levels
At the moment, the index is gaining 0.20% at 100.68 and a break above 100.93 (weekly/monthly high Apr.6) would aim for 101.34 (monthly high Apr.10 2017) and finally 103.65 (monthly high December 2016). On the flip side, the next support emerges at 99.25 (55-day SMA) seconded by 98.82 (monthly low Apr.15) and finally 98.27 (weekly low Mar.27).
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