US Dollar Index: Trades with caution near 99.00 ahead of US JOLTS Job Openings data

• The US Dollar Index trades cautiously at around 99.07 ahead of the US JOLTS Job Openings data for April.
• The impact of the US Job Openings data is expected to be limited on the Fed’s monetary policy outlook.
• The pause in US-Iran negotiations has raised concerns over a near-term deal closure.

The US Dollar (USD) trades subduedly in the European trading session on Tuesday ahead of the United States (US) JOLTS Job Openings data for April, which will be published at 14:00 GMT.

As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is down 0.1% to near 99.07.

The US JOLTS Job Openings data is expected to show that employers posted 6.82 million fresh jobs, marginally lower than 6.866 million in March.

The impact of the job data is expected to be limited on market expectations toward the Federal Reserve’s (Fed) monetary policy outlook, unless it deviates significantly, as the latest remarks from various Federal Open Market Committee (FOMC) have signaled that they are more concerned about high inflation than weak job market conditions.

This week, the major trigger for the US Dollar will be the US Nonfarm Payrolls (NFP) data for May, which will be released on Friday.

On the geopolitical front, paused US-Iran negotiations have raised concerns over the finalization of the peace deal in the near term.

Iran's Tasnim News agency reported on Monday that members of the negotiating team of Tehran have stopped message exchanges with the US through mediators in protest against attacks on Lebanon.

US Dollar Index technical analysis

The Dollar Index Spot trades marginally lower at around 99.07 at press time. The near-term bias is mildly bullish as price holds above the 20-day exponential moving average (EMA) at 98.94, suggesting underlying demand after the latest recovery from sub-99. The asset has been trading in a tight range between 98.75 and 99.45 for over two weeks.

The Relative Strength Index (RSI) at 52.94 sits just above the neutral 50 line, hinting that upward momentum is present but not overstretched.

On the downside, immediate support is seen at the 20-day EMA at 98.94, and a break below the same would expose it towards 98.50. Looking up, the pair could advance towards 100.00 if it manages to break above the May 28 high at 99.54.

(The technical analysis of this story was written with the help of an AI tool.)