USD Index: Weekly close below 104.00 should add to negative technical pressure – Scotiabank
|The US Dollar Index (DXY) is mild lift on the day. Economists at Scotiabank analyze the index outlook.
Upside potential remains limited
The USD seems to be stretching its yield-based valuation somewhat and upside potential remains limited without new motivation for markets.
There is a hint of USD vulnerability on the weekly DXY chart. The Index closed well off last week’s high, suggesting a rejection of the 61.8% retracement of the DXY’s Q4 decline (104.77). A lower close this week (below 104.00) should add to negative technical pressure on the USD generally.
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