DXY: US dollar index bounces back ahead of nonfarm payrolls data

The US dollar index (USD) is in a strong trend ahead of the official nonfarm payroll data from the United States. The index is up for the past three straight days and is trading at $93.00, which is significantly higher than the Monday’s low of $91.76. Rising likelihood of a V-shaped recovery The US dollar index dropped to a two-year low of $91.76 on Monday. This decline happened as traders were reacting to a dovish statement by Jerome Powell at the virtual Jackson Hole summit. In the speech, he reiterated that the central bank would let inflation rise above the