Bulls regain control and target 105.00, focus on Powell
- DXY picks up pace and flirts with 105.00.
- US yields correct lower across the curve on Wednesday.
- Chief Powell’s testimony will be the salient event this week.
The greenback, in terms of the US Dollar Index (DXY), regains the smile and approaches to the 105.00 mark on Wednesday.
US Dollar Index looks to Powell
The index adds to Tuesday’s small gains and advances decisively towards the 105.00 area despite US yields edge lower during the European morning.
The bid tone surrounding the buck follows investors’ expectations ahead of Powell’s Semiannual Monetary Policy Report before the US Senate, where the Fed’s next steps regarding its normalization process are expected to take centre stage.
Further events in the US docket includes the weekly MBA Mortgage Applications and speeches by Chicago Fed C.Evans (2023 voter, centrist), Rischmond Fed T.Barkin (2024 voter, hawk) and Philly Fed P.Harker (2023…
