- US Dollar bulls emerge at key support and eye a 50% mean reversion.
- Risk-off tones are benefiting the safe haven US Dollar ahead of key data and FOMC minutes.
The US Dollar, as measured by the DXY index, is up 0.85% at the time of writing. The index, which measures the US Dollar vs. a basket of currencies, is correcting a small portion of the November sell-off and is on track for a break above 108 the figure having made a high of 107.993 so far. The catalyst for the move can be partly put down to a risk-off start to the week due to fresh COVID-19 curbs in China that have fuelled worries over the global economic outlook.
Boosting the US Dollar, the new cases and warnings by health officials to the government have cast doubt on hopes that the government could soon ease its tough restrictions.
The rebound in the greenback follows the sharp selloff over the last few weeks that saw the Dollar Index…
