Dollar Steadies Around 103.2 After Better-Than-Expected Jobless Claims

The dollar index maintained its recent gain, sitting around 103.2 on Friday, close to a one-week high, as better-than-expected US jobless claims data eased concerns about an economic downturn. Thursday’s data revealed that initial jobless claims dropped by 17,000 to a seasonally adjusted 233,000 last week, marking the largest decline in about 11 months and coming in below the anticipated 240,000. Following this data, markets scaled back expectations for Federal Reserve interest rate cuts, with the likelihood of a 50 basis point reduction in September decreasing from 69% to 54%. Overall, the dollar is set to close the week with little change as the market recovers from losses incurred during Monday’s selloff. Meanwhile, the safe-haven yen and Swiss franc have retreated from recent highs, reflecting an improving macroeconomic outlook.

In the pair, which has been trading sideways since the beginning of the week, the first support level is at 1.0900. If this level is breached, the next supports to watch will be 1.0850 and 1.0800. On the upside, the first resistance is at 1.0960; if this level is surpassed, the next targets will be 1.1000 and 1.1050.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.1050	1.1000	1.0960	1.0900	1.0850	1.0800