- The DXY index is trading slightly higher just above the 96.00 level.
- US yields are mixed around Friday’s levels.
- Investors’ attention remains on the confrontation between Russia and Ukraine.
The US dollar index DXYwhich measures the strength of the dollar against a basket of major currencies, moves slightly higher above the 96.00 level during the European session on Monday.
DXY Index focuses on geopolitics and yields
The DXY index seeks to extend the rise for the third consecutive day in a context favorable to safe haven, and against the background of a growing caution in light of US-Russia standoff over Ukraine.
US cash markets also remain vigilant, with yields moving in a tight range and close to recent peaks. The sharp rebound in US yields following higher-than-expected US inflation figures in January and prospects for tighter monetary policy from the Fed this year appear to be taking a pause as geopolitical factors continue to play out. dictating market sentiment.
On sentiment, the dollar managed to continue rising after the US University of Michigan consumer sentiment index hit an 11-year low on Friday.
There are no major data releases on Monday, with attention expected to remain focused on the release of the FOMC minutes and US retail sales, both due later this week.
Relevant DXY US Dollar Index Levels
At time of writing, the DXY index is gaining 0.10% on the day, trading at 96.12. A break above 96.25 (3rd Feb high), would open the door to 97.44 (28th Jan high) and 97.80 (30th Jun 2020 high). On the other hand, the next support appears at 95.17 (low Feb 10), followed by 95.13 (low Feb 4) and 94.62 (low Jan 14).
Source: Fx Street
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