- DXY alternates gains with losses near the 93.00 mark on Thursday.
- Initial Claims, flash Q2 GDP figures take centre stage in the docket.
- Investors remain focused on Powell’s speech in Jackson Hole.
The greenback, in terms of the US Dollar Index (DXY), is exchanging gains with losses near the 93.00 mark in the wake of a flat opening of the European markets.
US Dollar Index looks to Powell
The index is looking to reverse two consecutive daily pullbacks on Thursday, always under pressure in response to the improved sentiment in the risk complex and unremitting uncertainty in the US political scenario.
In addition, recent positive developments from the US-China trade front have been also lending extra oxygen to the riskier assets in the last couple of sessions.
It appears to be a key day for the dollar, as Chief Jerome Powell will speak at the Jackson Hole Symposium, while weekly Claims and another revision of the Q2 GDP will also keep the buck under scrutiny from the calendar side.
What to look for around USD
The index trades on a choppy fashion so far this week, managing to stabilize somewhat around the 93.00 neighbourhood. In the meantime, and looking at the broader picture, investors remain bearish on the dollar against the usual backdrop of a dovish Fed, the unremitting progress of the coronavirus pandemic, political uncertainty and the massive stimulus package, whereas occasional bouts of US-China tensions could lend some temporary legs to the greenback. Supporting the negative stance on the dollar, the speculative community remained clearly biased towards the bearish side during the past week.
US Dollar Index relevant levels
At the moment, the index is up 0.02% at 92.91 and a break above 93.47 (weekly high Aug.21) would aim for 93.99 (monthly high Aug.3) and finally 94.20 (38.2% Fibo of the 2017-2018 drop). On the downside, the next support lines up at 92.13 (2020 low Aug.18) seconded by 91.92 (23.6% Fibo of the 2017-2018 drop) and then 91.80 (monthly low May 2018).
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