US dollar DXY index rises to three-day highs above 94.20

• The DXY Index continues to rally and retests the 94.20 / 25 region.
• US yields are on the defensive with the 10-year falling back to 1.58%.
• Weekly jobless claims, Challenger job cuts and the trade balance all stand out on today’s economic calendar.

The US dollar DXY index, which measures the strength of the dollar against a basket of the main currencies, moves higher again and hits new three-day highs in the region of 94.20 / 25 Thursday.

DXY Index focuses on data and returns

The DXY Index recovers above the 94.00 level and manages to outrun the post-FOMC pullback Wednesday against the backdrop of sour sentiment in the risk complex and despite the corrective decline in US yields.

The dollar lost momentum on Wednesday after the FOMC left no room for surprises. In fact, The Committee announced that the Fed will begin to reduce its stimulus program at a rate of 15 billion dollars a month ($ 10 billion in Treasuries and $ 5 billion in MBS) and is expected to end sometime in mid-2022. Later, the President Powell reiterated that the beginning of the QE reduction has no implications at any time for the increase in interest rates..

When it comes to US data, weekly jobless claims, Challenger job cuts and the trade balance are prominent on today’s economic calendar.

Relevant levels of the US dollar DXY index

At the time of writing, the DXY index is gaining 0.37% on the day, trading at 94.20. A break above 94.30 (October 29 high) would open the door to 94.56 (October 12 high) and then 94.74 (September 2020 high). On the other hand, the next support is at 93.27 (October 28 low), followed by 92.98 (September 23 low) and finally 92.32 (September 14 low).