USDMXN Higher after Mexico Consumer Confidence beat Forecasts
The US Dollar Index was little changed this Thursday after data from the Department of Labor showed a reduction in the number of first-time applicants for unemployment benefits in the US.
Initial jobless claims fell to 547,000 for the week ended April 17, a slight drop from the previous reading of 586K (upward revision) and lower than the market consensus of 607K.
This figure represents the lowest reading for this employment metric in more than one year, showing a gradual recovery in the US employment sector.
Additionally, there was a reduction in the 4-week average by 27,750 from the previous week’s figure, while continuous jobless claims also fell by 34,000 to 3,674,000 from the previous figure.
The data set did little to help the embattled US Dollar index, which was only marginally higher after taking a hammering all week.
Today’s marginal appreciation comes off a bounce on the channel’s lower border, acting as a support along with the 90.965 price level. Bulls need to take the DXY above 91.261 to target 91.50 in the first instance.
A continued advance brings 92.00 psychological resistance into the picture, with 92.50 and 92.80 serving as the barriers that stand before the 93.173 resistance, where the channel’s upper border is located, is accessed.
On the other hand, a further decline in the US Dollar Index could follow a breakdown of the channel, targeting 90.50, 90.22 and 89.74, in that order. Additional downside targets are also seen at 89.18 and 88.29.
