US Dollar Index flat below 100.00 post-NFP

• DXY sticks to the positive ground just below the 100.00 mark.
• US Non-farm Payrolls came in at -20.5M for the month of April.
• The US jobless rate rose to 14.7% (from 4.4%) during last month.

The greenback, when gauged by the US Dollar Index (DXY), keeps the narrow range unchanged at the end of the week in the 99.90/80 band.

US Dollar Index unchanged on Payrolls

The index is exchanging gains with losses on Friday, although it remains well on track to close the week with strong gains and therefore recovering part of the ground lost during the previous week’s sell-off.

The dollar has practically ignored April’s payrolls figures, which were largely anticipated by market participants. Indeed, the economy lost 20.5 million jobs and the unemployment rate ticked higher to post-war record high at 14.7%.

Now, with NFP figures in the rear-view mirror, investors’ attention would likely remain on the gradual re-opening of the US economy and the US-China trade front, where officials of both countries are expected to resume talks at some point in the near-term.

What to look for around USD

The greenback came under renewed downside pressure in the second half of the week on the back of the improved mood in the risk-complex. In the meantime, investors have now shifted the attention to the US-China trade war, while the country keeps planning the gradual re-opening of the economy. Supporting the momentum around the greenback emerges the current “flight-to-safety” environment, helped by its status of “global reserve currency” and store of value. On another front, and following the FOMC event, the Fed is expected to stay on the loose end of the monetary policy stance, at least until the coronavirus crisis abates.

US Dollar Index relevant levels

At the moment, the index is gaining 0.03% at 99.87 and a break above 100.40 (weekly high May 7) would open the door to 100.49 (78.6% Fibo of the 2017-2018 drop) and finally 100.93 (weekly/monthly high Apr.6). On the flip side, immediate contention emerged at 98.57 (weekly low May 4) followed by 98.37 (200-day SMA) and then 97.87 (61.8% Fibo of the 2017-2018 drop).