US Dollar Index (DXY)

Dollar at Core Level

The US Dollar Index held steady near 99.30 on Friday, on track for its third consecutive weekly gain, as strong US economic data eased expectations of another interest rate cut this month by the Federal Reserve.

Weekly jobless claims came in well below expectations, indicating a resilient labor market, while some manufacturing surveys also exceeded forecasts.

Several Federal Reserve officials highlighted signs of a stable labor market and cautioned about potential inflation risks.

Markets widely expect the Fed to leave interest rates unchanged later this month, pushing back expectations for the next rate cut to June or later.

Dollar Index Technically

The index rebounded yesterday after reaching the upper boundary of the ascending four-hour price channel, influenced by a bearish divergence from the MACD indicator.

This may indicate further corrective declines near the lower channel limits, close to the 98.80/75 levels, before resuming its upward movement if it bounces off the channel with reversal candles.