The US Dollar Index remains near weekly lows around 91.60

• DXY remains offered and well below the 92.00 level.
• US 10-year yields recover from levels below 1.50%.
• Weekly claims increased by 712,000 over the past week.

The dollar remains unchanged to the bearish, although it manages to bounce away from lows initially touched around 91.50 when it tracks it. the US dollar index (DXY).

The US Dollar Index Watching For Returns

The index is now attempting to consolidate around the 91.60 / 50 zone, all against the broader 3-day corrective decline and following the softer tone of US yields, particularly after Wednesday’s disappointing inflation figures.

Indeed, some profit taking (in light of recent strong gains) plus corrective movement in yields appear to be weighing on the dollar, which has so far held well around 91.50.

In the US data space, initial claims increased 712,000 weekly, beating expectations and bringing the 4-week average to 759,000 (from 793,000). More data to follow with the launch of JOLT job openings.

What to look for around USD

Sentiment around the dollar suffered from recent US inflation figures and the subsequent correction to the region below 92.00. The change in attitude of the dollar observed in recent weeks came along with the strong rebound in US yields to the levels recorded more than a year ago, all in the context of the growing perception of investors of higher inflation in the coming years. months. However, a sustainable move higher in DXY should be taken with a pinch of salt amid the Fed’s mega-accommodative stance (until “substantial progress” is seen), additional fiscal stimulus, and hopes for a strong economic recovery in the outside.

Relevant levels

At the moment, the index is shedding 0.15% at 91.68 and faces the next support at 91.50 (March 11 weekly low) seconded by 91.05 (February 17 high) and then 90.63 (50-day SMA). On the upside, a breakout of 92.50 (March 9, 2021 high) would expose 92.82 (200-day SMA) and finally 94.30 (November 4, monthly high).