Listen to the latest market mood for the DXY.
Asian equity markets traded positively to start the week on a positive risk-on tone. A recent market theme we have been seeing is a ‘risk-on’ Monday and that theme is looking like repeating itself today. The constructive risk on tone has resulted in Dollar outflows which are supporting the major currency pairs. Furthermore, as well as the positive risk tone, the rising number of US COVID-19 cases is also helping to weaken the USD.
Therefore, expect Dollar Index sellers from pullbacks.
Day trade outlook – We expect this trade to play out before the end of the US session.
- Any reversal in risk tone would strengthen the USD and invalidate this outlook DXY.