After hitting three-months lows at the tail end of last week, the US Dollar Index gained ever so slightly once the Asia markets opened on Monday morning.
Traders are recalibrating their dollar sentiment following a surprise inflation reading last Thursday that saw the core rate coming in softer than expected.
DYX is currently priced in at 106.36, and with little on the US economic calendar (save for a tense meeting between US president Joe Biden and Chinese leader Xi Jinping later today), the index is expected to maintain low volatility levels.
GBP/USD pared back around 35 pip from Friday’s 10-week high this morning, but at US$1.176, the pair remains in a strong position relative to recent performance.
Will GBP/USD run on a dollar peak? – Source: capital.com
EUR/USD similarly dipped, but the pair remains fairly above parity at USD$1.032.
EUR/GBP is looking fairly rangebound at 87.6p, with a resistance point pegged to last-week’s high of 88.3p.
With the greenback substantially down against the Japanese yen (having retraced to August highs of 139.50) and the Swiss franc (also down to August highs of 94.62) speculation of a dollar peak is mounting.
We’ll find out as the week progresses.