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The dollar index (DXY), which tracks the value of the greenback against majors, is approaching the psychological hurdle at 100, which if breached, could bring in stronger buying pressure, according to said Neil Jones, head of foreign-exchange sales to financial institutions at Mizuho Bank Ltd.

Key quotes

The 100 level is a big deal. A number of buy signals will kick into play, it will set the alarm bells off.

It’s the level that capped the dollar twice in 2015 and effectively offered support during the first quarter of 2017 before finally giving in. 

The DXY is currently trading at 99.85, the highest level since May 2017, having started the year at lows near 96.50.