Dollar index flat around 96.00 after yesterday’s rally

The US dollar is about to end Wednesday little changed in the currency market compared to yesterday’s closing levels. The US dollar index peaked during the American session at 96.25 but then pulled back toward the 96.00 handle as European currencies recovered from losses. 

On Tuesday the DXY reached the highest level in two months and today it approached 96.30 before losing strength. The USD index still shows a positive tone but needs to break above the 96.30 to open the doors to more gains and to a potential test of downtrend line from December. 

In the currency market, the worst performer was the Japanese yen. USD/JPY rose above 103.50 (highest in a month). Wall Street main stock indexes were in positive territory, erasing Tuesday’s decline. The Dow Jones was up 0.72% at 18,300 while the S&P 500 was gaining 0.55%. Gold printed fresh 3-month lows at $1262 and the WTI barrel climbed 2%. 

In the US economic data before Friday's NFP showed mixed numbers. The September ADP private employment report showed numbers below expectations (154K vs 166K), factory orders rose a 0.2% in August and the ISM non-manufacturing index climbed to 57.1 in September from 51.4.