Ella 
The U.S. dollar index fell for three consecutive trading days.
So far, the U.S. dollar index has found initial support around 103.00.
PCE and weekly jobless claims will be in focus for U.S. markets.
On Thursday, the U.S. dollar index (DXY) rebounded from a recent two-week low near 103.00.
U.S. dollar index bullish ahead of data release
The U.S. dollar index edged higher after European markets opened on Thursday, taking some distance from Wednesday’s two-week low around 103.00.
The dollar’s strength comes as risk-related currency momentum weakens, while U.S. yields remain slightly on the defensive across the curve, reflecting investors’ repricing of a prolonged deadlock in the Federal Reserve’s rate hike cycle.
Inflation data, as measured by PCE and core PCE, will take precedence over weekly initial claims, personal spending and personal income in U.S. data due later. Also, Boston Fed Susan Collins (Vote 2025, Centrist) is due to speak later in the North American session.
US dollar trend
Earlier in the week, the U.S. dollar index regained some balance after a three-session data-driven sharp pullback to the 103.00 area.
At the same time, the good health of the U.S. economy continues to provide support for the dollar, which seems to have reignited the argument for the Fed’s “tight-long” stance.
By contrast, the view that the Fed’s data-reliant stance could face headwinds for the dollar amid ongoing deflation and a cooling labor market appears to have regained some traction recently.
Main events in the United States this week: PCE, core PCE, personal income, personal spending, Chicago PMI, initial jobless claims (Thursday) – non-farm payrolls, unemployment rate, final manufacturing PMI , ISM manufacturing PMI, construction spending (Friday).
Main topic: Ongoing debate over a soft or hard landing for the U.S. economy. Initial speculation of a rate cut in early 2024. Geopolitical implications for Russia and China.
US dollar index related levels
Currently, the U.S. Dollar Index is trading around 103.68, up 0.19%, and a move above 104.44 (August 25 high) would open the door to 104.69 (May 31 high) and eventually 105.88 (March 8, 2023 high) point). On the downside, near-term support lies at 103.07 (200-dma), then at 102.34 (55-dma) and 101.74 (Aug. 4 low).
