The US Dollar Index (DXY) reached its highest level since early November near 106.00. A break above this level could happen before Friday, but Friday’s US jobs data should trigger a correction, economists at ING report.

Volatility should remain elevated

“For now, volatility should remain elevated, and the Dollar’s balance of risks is moderately tilted to the upside ahead of Friday’s jobs numbers.”

“Today, we have the second round of Powell’s testimony (to the House), a speech by Thomas Barkin and the release of the Fed’s Beige Book. On the data front, ADP jobs figures will be published – they have not had good predictive power for official data – as well as JOLTS jobs openings.”

“DXY may well break above 106.00 before Friday, although we expect a correction with the NFP release.”