US Dollar Index clinches fresh tops near 97.40 on NFP
- The index moves higher despite mixed US Payrolls.
- US 10-year yields climb to news highs near 2.54%.
- US economy added nearly 200K jobs during March.
The greenback briefly tested the 97.20 region soon after the publication of US Payrolls, although it has quickly bounced to daily highs near 97.40 when gauged by the US Dollar Index (DXY).
US Dollar Index bid after NFP
The index advanced to the 97.40 region today, or fresh highs, after the US economy added 196K jobs during last month, more than initially forecasted. February’s report has been revised higher to 33K jobs from 20K jobs.
Further data saw Average Hourly Earnings – a proxy for wage inflation – expanding at a monthly 0.1% and 3.2% from a year earlier, missing consensus.
In the meantime, the greenback is on the way to close the second consecutive week with gains, fully recovering from multi-week lows in the vicinity of 95.70 seen after March’s FOMC meeting.
What to look for around USD
DXY keeps tracking the broad risk appetite trends and particularly any headlines coming from the US-China trade developments. In addition, positive results in the US calendar have been also fuelling the upside in DXY to 97.00 and beyond, while market participants continue to adjust to the prospects of no hikes from the Fed this year and just one probable rate raise in 2020. Additionally, the buck’s safe haven appeal and widening rate differentials vs. its peers are also are also lending support to the move. From the political view, the debt ceiling, the border-wall funding and upcoming elections next year carry the potential to spark bouts of extra volatility around the greenback.
US Dollar Index relevant levels
At the moment, the pair is up 0.04% at 97.34 and a breakout of 97.52 (high Apr.2) would expose 97.71 (2019 high Mar.7) and finally 97.87 (monthly high Jun.20 2017). On the downside, the next support aligns at 96.84 (21-day SMA) seconded by 96.57 (55-day SMA) and finally 95.74 (low Mar.20).
