US Dollar Index ends recovery before NFP day

The US dollar ended with mixed results in the market ahead of the non-farm payrolls report. The greenback dropped sharply against European currencies and finished practically unchanged versus the yen and commodity currencies. 

The US Dollar Index dropped 0.48%, having the worst day of the week. It ended two days of consolidation and also the recovery from multi-month lows. It was unable to hold above 96.00 and turned lower. It finished the session at 95.55. 

US economic data failed to offer support to the DXY. The ADP survey showed that the private sector added 158K jobs, below 185K of market consensus. On the positive side, data on the service sector surpassed expectations. The ISM Non-Manufacturing Index came in at 57.4, against expectations of 56.5 while the PMI Markit index jumped to 54.2. On Friday, economic data will include the June non-farm payroll report. 

US: Private sector employment increased by 158,000 jobs in June - ADP

US: ISM Non-Manufacturing Index recovers in June - Wells Fargo 

Atlanta Fed: Forecast for GDP growth in Q2 of 2017 eased to 2.7%

European currencies outperformed on Thursday led by the euro, that jumped following the release of the ECB minutes. The document showed that officials discussed removing the “easing bias”. European bond yields rose to the highest in months. 

Technical levels 

To the upside, immediate resistance for the US Dollar Index is seen at 95.75 (Jul 4 & 5 low), 96.05 (Jul 4 high), followed by 96.20 and 96.48 (20-day moving average). On the opposite direction, support might lie at 95.50 (Jun 30 high / Jul 6 low) and 95.15/20 (2017 low).