Ella 
US dollar index fluctuates around 102.50
U.S. Treasury yields set to extend recent gains on Friday
U.S. non-farm payrolls report draws attention
The US dollar index remained under pressure around the 102.50 area on Friday.
Dollar Index Eyes Key Data
The U.S. dollar index continues to face some selling pressure after hitting a multi-week top above 102.80 on Tuesday, while the market remains cautious ahead of key U.S. data releases.
The trend of the dollar so far is consistent with the overall consolidation of the global market before the release of the US non-agricultural report in North America.
Meanwhile, U.S. bond yields lacked a clear direction in early European trading, with 10-year and 30-year yields rising to multi-month highs on Thursday.
In terms of U.S. data, the U.S. non-farm population is expected to grow by 200,000 in July, and the unemployment rate is expected to hold steady at 3.6%.
The US dollar index seems to be facing strong resistance around 102.80 ahead of the release of the US non-farm payrolls report for July. The U.S. dollar index has resumed a multi-day rally so far as momentum in risky assets has dropped sharply. However, the dollar’s gains could face additional headwinds as the Fed adopts a data-dependent stance against the backdrop of persistent deflation and a cooling job market.
In addition, speculation that the rate hike in July may be the last of the current rate hike cycle is also expected to keep the dollar under some temporary pressure.
Important topic: Ongoing debate over soft or hard landing for the US economy. Final interest rates near peak vs. speculation of a rate cut in late 2023 or early 2024. Geopolitical conflict with Russia and China. US-China trade conflict.
US Dollar Index Correlation Levels
The index is currently up 0.04% at 102.52, and a break above 102.84 (weekly high Aug. 3) could open the door to 103.54 (weekly high June 30) and the 200-day SMA at 103.57. On the other hand, short-term support lies at 100.55 (weekly low Jul 27), then at 100 (psychological level) and 99.57 (low Jul 13, 2023).
