• DXY comes under some pressure near 97.30.
• US flash Q4 GDP figures came in above estimates.
• Weekly claims rose in line with expectations by 260K.

After climbing as high as the 97.30 region, the greenback now gives away some gains and recedes to the 97.00 neighbourhood when gauged by the US Dollar Index (DXY).

US Dollar Index in fresh cycle tops

The demand for the dollar accelerated on Thursday and propelled the index to levels last visited back in July 2020 further north of the 97.00 barrier.

The hawkish bias from Chairman Powell at his press conference post the FOMC meeting on Wednesday prompted some repricing of the Fed’s rate path among investors and sponsored fresh inflows into the buck on Thursday.

Also collaborating with the intense upside bias in the dollar, preliminary figures of the US GDP now see the economy expanding more than expected 6.9% in Q4. On the not-so-bright side, headline Durable Goods Orders contracted 0.9% from a month earlier in December.

US Dollar Index relevant levels

Now, the index is gaining 0.57% at 97.02 and a break above 97.26 (2022 high Jan.27) would open the door to 97.80 (high Jun.30 2020) and finally 98.00 (round level). On the flip side, the next down barrier emerges at 96.00 (55-day SMA) seconded by 95.41 (low Jan.20) and then 94.62 (2022 low Jan.14).