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Dollar steadies near 100.00 as traders await US Nonfarm Payrolls
The DXY is holding around the 100.00 level as Middle East-related risk and higher oil prices support safe-haven dollar demand and keep Fed-hike expectations elevated.
The US Dollar Index, or DXY, was consolidating around the 100.00 mark during the Asian session on Friday, as traders awaited the closely watched US monthly jobs report, FXStreet reported.
FXStreet said persistent geopolitical uncertainty tied to the Middle East, along with bets for at least one US Federal Reserve rate hike, has supported the USD by adding a geopolitical risk premium that tends to boost demand for safe havens.
The outlet noted that reports involving potential attacks linked to regional factions and renewed concerns about oil shipping have contributed to higher oil prices, which in turn revived inflation fears and fueled expectations for a more hawkish Fed, supporting elevated US bond yields.
Technically, FXStreet said the DXY is holding above the 100-day simple moving average at 99.74, keeping a mildly bullish near-term tone, but bullish traders are waiting for more direction from the Nonfarm Payrolls report.
Latest closeDollar index 99.98 ▲0.3%