US DOLLAR OUTLOOK: DXY INDEX EYES EMPLOYMENT DATA, INFLATION RISK
- US Dollar strength sent the broader DXY Index recoiling nearly 0.4% higher on Tuesday
- The Greenback caught a bid thanks to demand for safe-havens as risk appetite soured
- Nearside resistance looms large over US Dollar bulls amid premature Fed taper talks
The broader US Dollar regained lost ground on Tuesday with the DXY Index rising about 0.4% to erase prior session losses. US Dollar strength was seen across the board of major currency pairs and most prominent across AUD/USD price action. Aside from general risk aversion and corresponding demand for safe-haven currencies like the USD, fears of not-so transient inflation seem to have intensified and heated up the conversation on when the Federal Reserve might start normalizing policy.
DXY – US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (24 DEC 2020 TO 04 MAY 2021)
Chart by @RichDvorakFX created using TradingView