JPMorgan: bullish on USD
US dollar index (DXY) rose to a 4-week high of 80.57 as the markets await US to release strong economic data on Thursday. According to the consensus forecast, US housing starts increased to a 1.02 million annual pace in June from 1 million in the previous month. Manufacturing in the Philadelphia region expanded for a fifth month in July, while building permits increased in June, figures may show.
According to strategists at JPMorgan, the bullish scenario in DXY has a high potential to develop. On their view, DXY needs to break above the 80.09/81.14 resistance area to confirm a sustained bullish reversal. “This area includes the June highs and the 38.2% retracement of the decline from the 2013 peak”, they explain.