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Will Dollar Index sustain its recovery?

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The US dollar index began the week on a negative note but then recovered back well to keep the broader positive sentiment intact. The dollar index fell to a low of 93.68 on Tuesday and then reversed higher to make a high of 94.45 on Wednesday. The index fell back from this high to close the week on a flat note at 94.10. The euro failing to sustain the break above 1.16 and reversing sharply lower from the week’s high of 1.1640 aided the dollar index to move up above 94 again last week.

US jobs data release on Friday failed to impact the dollar movement. The US added just 1,94,000 to its non-farm payroll in September. Market expectation was to see an increase of 4,90,000 in the non-farm payroll. However, the unemployment rate fell sharply to 4.8 per cent in September from 5.2 per cent in the previous month.

For the coming week, US Consumer Price Index (CPI) inflation numbers on Wednesday and retail sales on Friday are the important data releases to…

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