- The index recovers the area above 107.00 on Monday.
- US yields remain buoyant amid a general lack of direction.
- Fed Vice President L. Brainard will speak later on the “Economic Outlook”.
The dollar index (DXY)which tracks the dollar against a bunch of its major competitors, is holding the offered tone unchanged after the opening bell on Wall St. on Monday.
USD index supported around 106.30
The index recovers some of its composure after the sharp fall registered in the second half of last week, caused mainly by the US inflation figures for the month of October, which were lower than expected, and by the increasing speculation about a Fed policy shift.
The dollar appears to be on offer at the start of the week, thanks to some respite in risk recovery and profit taking after the recent broad rally in risk assets.
There is nothing on the US agenda on Monday, so the Brainard Fed’s “Economic Outlook” debate will be the main event of the session.
What to look for around the dollar
The index attempts a modest bounce back past 107.00 and partially outruns the post-CPI bearish move at 106.30/25 on Monday.
Meanwhile, investor repricing of a likely Fed policy pivot now emerges as a new and fairly reliable source of dollar weakness, in line with a corrective decline in US yields across the curve.
Relevant USD Index Levels
Now, the index is gaining 0.62% at 107.07 and faces the next upside barrier at 109.08 (100-day SMA), seconded by 110.95 (55-day SMA) and then 113.14 (3rd Nov monthly high). On the other hand, the break of 106.28 (Monthly Low Nov 11) would open the door to 104.83 (200-Day SMA) and finally 104.63 (Monthly Low Aug 10).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
