US Dollar Index keeps gains above 100.00 ahead of data

• DXY regains the 100.00 barrier and above on Thursday.
• Fed’s Powell ruled out negative rates on Wednesday.
• US weekly Initial Claims will be in the limelight later in the session.

The greenback, in terms of the US Dollar Index (DXY), has resumed the upside and regained the 100.00 barrier after a brief test of the 99.60/55 band on Wednesday.

US Dollar Index now looks to data

Following a test of lows in the vicinity of 99.60 on Wednesday, the index managed to regain composure and advance once again above the key level at 100.00 the figure.

The dollar appears bid after Chief Jerome Powell reiterated the Federal Reserve is not considering reducing rates below the zero mark at his testimony on Wednesday, while he insisted that ‘more has to be done’ in the current coronavirus crisis. In the meantime, several US states continue their plans to re-open the economy, always at a gradual pace.

In the US data universe, weekly Initial Claims will take centre stage later in the NA session seconded by the speech by Minneapolis Fed N.Kashkari (voter, dovish).

What to look for around USD

The greenback keeps the buying interest well and sound so far this week against the backdrop of a generalized consolidative fashion in the global markets. In the meantime, the US-China trade war and the gradual re-opening of the US economy continue to be in the centre of the debate among investors. Supporting the momentum around the greenback emerges the current “flight-to-safety” environment, helped by its status of “global reserve currency” and store of value. On another front, and following the FOMC event, the Fed is expected to stay on the loose end of the monetary policy stance, at least until the coronavirus crisis abates.

US Dollar Index relevant levels

At the moment, the index is gaining 0.11% at 100.31 and a break above 100.44 (weekly high May 12) would open the door to 100.49 (78.6% Fibo of the 2017-2018 drop) and finally 100.93 (weekly/monthly high Apr.6). On the other hand, the next support is located at 98.57 (weekly low May 4) followed by 98.42 (200-day SMA) and then 97.87 (61.8% Fibo of the 2017-2018 drop).