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  • DXY hovers around 100.00 ahead of the jobs report.
  • Focus stays on the COVID-19 and the impact on the economy.
  • US Initial Claims, Producer Prices, advanced U-Mich next on tap.

The US Dollar Index (DXY), which gauges the greenback vs. a bundle of its main competitors, is alternating gains with losses around the 100.00 mark on Thursday.

US Dollar Index now looks to the weekly Claims

The index is extending the erratic performance in the second half of the week and appears to be stabilizing around the 100.00 neighbourhood following Monday’s weekly tops in the boundaries of 101.00 the figure.

In the meantime, price action in the global markets keeps looking to the developments from the coronavirus and the negative effects on the economy as well as the increasing prospects of a global recession.

Later in the session, markets’ attention will remain on the weekly report on Initial Claims, particularly after the recent steep observed in the last couple of weeks of around 10 million claims.

What to look for around USD

DXY enters the second half of the week in a cautious bias, as market participants continue to look to headlines from the COVID-19 for direction. In the very near term, the publication of the weekly report on the labour market will be once again in centre stage later in the NA session. On the supportive side for the buck, market participants seem to prefer the dollar vs. other safe havens like the Japanese yen and the Swiss franc in cases when risk aversion kicks in, all helped by its status of “global reserve currency” and store of value.

US Dollar Index relevant levels

At the moment, the index is advancing 0.22% at 100.18 and a break above 100.93 (weekly/monthly high Apr.6) would open the door to 101.34 (monthly high Apr.10 2017) and finally 102.99 (2020 high Mar.20). On the other hand, the next support emerges at 99.77 (weekly high Apr.7) followed by 98.27 (weekly low Mar.27) and then 98.12 (200-day SMA).