Listen to the latest market mood for the DXY.

The risk tone has soured as tensions between the US and China have escalated amidst a war of words. However, yesterday saw soma actual action in the war of words with the US Senate passing a bill at increasing oversight of Chinese companies which could require Chinese firms to de-list from US exchanges and requires companies to certify that they are under no Chinese Gov’t control.

  • The USD outlook should be supported as long as this negative risk tone remains.
  • Therefore, if this outlook remains, expect DXY buyers on pullbacks.
  • We expect this trade to play out over the next 6-8 hours.

Trade Risks
The main risk to this outlook:

  • Any positive news on COVID19 will weaken the USD.
  • Any positive rhetoric between the US and China.