US Dollar Index looks offered well below 96.00

  • DXY starts the week on the defensive and drops to 95.70.
  • Diminishing geopolitical risks lend support to the risk-on trade.
  • US markets will be closed due to the President Day’s holiday.

The greenback, when tracked by the US Dollar Index (DXY), fades Friday’s uptick and refocuses on the downside at the beginning of the week.

US Dollar Index weighed down by risk appetite

The index reverses two consecutive daily advances and revisits the 95.70 region on Monday in response to the broad-based improvement in the risk complex, particularly following auspicious news from the Russia-Ukraine front.

Indeed, US Blinken will meet his Russian peer Lavrov later in the week, while a potential Biden-Putin summit could be also in the pipeline, all collaborating with the current bias towards the riskier assets.

Absent releases in the US docket, the speech by FOMC M.Bowman (permanent voter, centrist) will be the sole event later in the NA…

Read more…