The US Dollar prints small gains against most major G20 peers.

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• The US Dollar prints small gains against most major G20 peers.
• Traders are getting ready for the weekly US Jobless Claims.
• The US Dollar Index pops back above 104 in a very calm market for now.

The US Dollar (USD) is back in the green after a stalemate session on Wednesday. Initially hopes of a ceasefire breakthrough between Israel and Hamas made the safety-linked US Dollar retreat a touch. After Israel’s Prime Minister Benjamin Netanyahu came out late Wednesday evening with a statement rejecting the plan, however, the USD gained a bid. According to Netanyahu the complete destruction of Hamas would only take a few more months anyway.

On the economic front, traders are getting ready for the weekly US Jobless Claims. The Wholesale Inventories are due as well later this Thursday, though expect not much movement in the Greenback on the back of that.

Traders looking for a longer term trade or strategy, or analysts that want to better assess the longer term inflation risks might consider taking a look at the US crop report: The United States Department of Agriculture (USDA) releases every month the World Agricultural Supply and Demand Estimates report (WASDE) where insights are given on supply, demand, bad harvests on all sorts of crops, and thus on possible weak spots that might attribute to the food inflation basket.

The US Dollar Index (DXY) is slowly but surely advancing higher again with markets digesting the failed ceasefire plan that was put on the table by Hamas. The harsh rhetoric from Prime Minister Benjamin Netanyahu could mean some lingering US Dollar strength in the coming weeks. Meanwhile markets will be looking for next Republican state Caucus elections, which could lock in Trump as a favorite for November.

Should the US Dollar Index move higher again, first look for a test at the peak of Monday, near 104.60. That level needs to be broken and is more important than the 100-day SImple Moving Average snap at 104.30. Once broken above that Monday high, the road is open for a jump to 105.00 with 105.12 as key levels to keep an eye on.

The 100-day SMA (104.29) is clearly the unreliable boyfriend in the rally at the moment. A false break on Monday and no support provided on Tuesday from the moving average opens the door for a bit of a squeeze lower. The first ideal candidate for support is the 200-day SMA near 103.60. Should that give way, look for support from the 55-day SMA near 103.00 itself.

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