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.
The main risk to this outlook:
- Any positive news on COVID19 will weaken the USD.
- Any positive rhetoric between the US and China.