US dollar steadily rose on positive Jobless Claims

The US dollar rose on Thursday, initially to 103.45 and then stabilizing at 104.15, following positive Initial Jobless Claims data. However, bulls are running out of steam due to a lack of fresh drivers and Fed speakers refusing to give additional guidance on the bank’s next steps concerning future rate policy path.

The US Federal Reserve’s Chair, Jerome Powell, considered a cut in March “unlikely” and needs more evidence on inflation to gain confidence for cutting rates. Initial Jobless Claims for the week ended on February 3 fell short of the consensus, with the claims coming in at 218K, lower than the predicted 220K and a slight reduction from the previous week’s 227K claims.

The possibility of rate cuts in March dropped to 20%, but the odds rise to 50% for the May meeting, where the probability of a hold is also high. An ascent in US Treasury bond yields supports the US Dollar.

Although the DXY Index fails to regain the 100-day SMA, bulls still present, with the daily Relative Strength Index showing a flat slope in positive territory.