US Dollar Index looks to regain 99.00 ahead of data

• DXY alternates gains with losses in the vicinity of the 99.00 mark.
• Focus of attention stays on the re-opening of the US economy.
• Durable Goods Orders, Claims, EIA’s report next on the docket.

The US Dollar Index (DXY), which tracks the buck vs. a bundle of its main competitors, is looking to consolidate around the lower bound of the weekly range near 99.00.

US Dollar Index now looks to data

The index is losing ground for the third consecutive session so far on Thursday, coming under extra selling pressure after another failed attempt to test/surpass the triple-digit barrier earlier in the week (Monday).

In the meantime, the demand for the dollar remains subdued against the backdrop of the improved tone in the risk-associated universe, particularly following recent headlines of potential coronavirus vaccines while progress on the re-opening of the US economy also collaborates with the risk-on mood.

Later in the session, the focus of attention is expected to remain on the weekly labour market report, Durable Goods Orders, Pending Home Sales, and the EIA’s report on crude oil supplies.

What to look for around USD

The greenback lost momentum just below 100.00 the figure so far this week on the back of a better mood in the riskier assets. In the meantime, the dollar remains vigilant on the US-China trade front, the gradual return to some sort of normality in the US economy and developments from the coronavirus pandemic. On the constructive stance around the buck, it remains the safe haven of choice among investors, helped by its status of global reserve currency and store of value. The dollar also derived extra support after Fed’s J.Powell recently ruled out negative rates, although he stressed the readiness of the Fed to implement further measures to support the economy.

US Dollar Index relevant levels

At the moment, the index is gaining 0.05% at 99.00 and a break above 99.98 (weekly high May 25) would aim for 100.56 (monthly high May 14) and finally 100.93 (weekly/monthly high Apr.6). On the other hand, the next support is located at 98.72 (weekly low May 27) followed by 98.57 (monthly low May 4) and then 98.49 (200-day SMA).