- US Dollar is meeting a key support area for the open.
- Bulls are lurking on the backside of the hourly trendline.
The US Dollar DXY index broke out of the week’s channel between 111.25 and 109.40 in the final two days of the week on the back of the US Consumer Price Index. DXY dropped to a fresh low of 106.28 on Friday, extending the post-CPI dump into a fresh layer of potential support.
O(n Friday, the US Treasury market was closed for the Veterans Day Holiday, but investors cheered a slight softening of China’s COVID restrictions which helped risk assets to run higher, weighing on the greenback as investors favored riskier currencies. DXY was down about 3.8% over two sessions, on pace for its largest two-day percentage loss since March 2009.
For the week ahead, Federal Reserve speakers are likely to push back on the overly dovish market reaction after the October CPI report. This could see the…
