US Dollar DXY Index Remains Ranged Near 93.40 Level

• The DXY index alternates gains with losses in the 93.40 region.
• Talks about the additional stimulus remain stalled amid political uncertainty in the United States.
• The usual weekly jobless claims, the Philadelphia Fed Manufacturing Index, and various speeches by Fed members stand out on today’s calendar.

He US Dollar DXY Index, which measures the strength of the dollar against a basket of major currencies, remains within a range around the region of 93.40 in the second half of the week.

US dollar index focuses attention on data

The DXY index remains unchanged its hectic activity so far this week, always supported near the 93.00 level and in a context of persistent uncertainty in the US political scene.

In fact, the DXY index seems cautious amid growing consensus of a Biden victory in the November 3 election, which is considered a bearish event for the dollar.

However, occasional pullbacks in the DXY index appear limited after US lawmakers failed to unblock negotiations around another fiscal stimulus bill, particularly after President Trump’s proposal (a $ 1.8 trillion bill) was deemed insufficient by House Speaker Nancy Pelosi.

When it comes to US data, the focus is expected to be on initial weekly jobless claims alongside the Philadelphia Fed Manufacturing Index, New York Empire State Index, and export / import prices. . Later, R. Quarles of the FOMC and N. Kashkari of the Minneapolis Fed have speeches scheduled.

What can we expect around the USD?

The DXY index remains so far supported by the 93.00 zone in the context of an alternation in risk appetite trends. However, occasional bullish attempts on the DXY index are considered temporary as underlying sentiment towards the dollar remains cautious to bearish. This view is reinforced by the Federal Reserve’s “low-for-longer” rate stance, hopes for a strong recovery in the world economy, negative stance in the speculative community, and mounting stakes for a “wave” victory. blue ”in the November elections. The resumption of talks around another fiscal stimulus package also weighs on the dollar.

Relevant levels of the US dollar index DXY

At the time of writing, the DXY index is gaining 0.05% on the day, trading at 93.45. A break above 94.20 (38.2% Fibonacci retracement of the 2017-2018 dip), would target 94.70 (100-day SMA) and 94.74 (September 25 high). On the downside, immediate support is at 93.01 (Oct 12 low), followed by 92.70 (Sept 10 low) and 91.92 (23.6% Fibonacci retracement of 2017-2018 dip).