- The DXY Index regains some composure and is approaching the 96.00 level.
- Higher US yields support the dollar’s recovery so far.
- November wholesale inventory data in the US will be released today.
The US dollar DXY index, which measures the strength of the dollar against a basket of major currencies, returns to positive territory and seeks to regain the level of 96.00 during the European session on Monday.
DXY Index focuses on data, returns and Powell
The DXY index partially recovers from Friday’s moderate retracement and is moving bullishly close to the 96.00 level amidst the continued upward momentum in US yields through the curve, while market participants appear to have already digested the disappointing results of the NFP non-farm payroll report released on Friday (+199,000).
In the US cash markets, the short side of the curve is extending higher and already flirting with the 0.90% level, while the yields of the key benchmark 10-year bond remain firm and close to the 1.80% level.
The economic calendar on Monday in the United States will only present November wholesale inventoriesAlthough the attention of investors will be on the publication of inflation figures measured by the CPI, as well as retail sales for December, which will be announced at the end of the week.
Relevant levels of the US dollar DXY index
At the time of writing, the DXY index is up 0.14% on the day, trading at 95.87. A break above 96.46 (Jan 4 high) would open the door to 96.90 (Dec 15 high) and 96.93 (Nov 24 high). On the other hand, the next support appears at 95.57 (December 31 low), followed by 95.51 (November 30 low) and 94.96 (November 15 low).
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