Dollar index remains firm ahead of US economic data and speeches from top Fed officials

The dollar index keeps firm tone early Thursday following 0.7% bounce previous day, on another failure to sustain break below psychological 100 support.

The greenback was lifted by headwinds from 100 zone and improving sentiment, as traders’ view on Fed rate outlook turned hawkish despite dissonant tones from the latest speeches of Fed officials.

The policymakers are divided regarding the central bank’s next steps, as some support stronger policy easing while others are more cautious and point to still elevated inflation as a major threat.

Investors bet for another 50 basis points cut in November, while economists see 25 basis points cuts more likely, contributing to unclear picture about the magnitude and pace of easing in coming months.

All eyes are on speeches of Fed Chair Powell and other central bank officials, due later today, in expectations for clearer signals about Fed’s action.

Releases of US weekly jobless claims and Q2 GDP will be also in focus today.

Technical picture on daily chart has slightly improved but it is bearish overall and warns of persisting downside risks as long as the price stays below pivotal 101.00 resistance zone (converging falling 20/30 DMA’s).

Sustained break here to ease downside pressure and allow for further recovery and attack at next pivots at 101.80 zone lower platform, violation of which to generate reversal signal.

Conversely, repeated attacks at 100 pivot would be likely near-term scenario.

Res: 100.91; 101.00; 101.33; 101.79
Sup: 100.50; 100.00; 99.86; 99.20