• DXY deflates after challenging 2021 highs past 96.20.
  • US yields remain depressed, risk-off mood bolsters the dollar.
  • FOMC’S Clarida, Waller speaks later in the NA session.

The greenback came under some pressure after challenging 2021 highs past 96.20 when tracked by the US Dollar Index on Friday.

US Dollar Index closes its fourth straight week with gains

The index keeps the bid bias unchanged, as the risk aversion mood dominates the sentiment in the global markets at the end of the week.

The rebound in the greenback after two consecutive daily pullbacks appears exclusively driven by renewed weakness in the risk complex, while US yields extend further the recent bearish move. That said, the index is on the way to close its fourth consecutive week in the positive territory, while it gained more than 4.6% since September lows in the 92.00 neighbourhood.

Later in the session, FOMC’s permanent voters R.Clarida (dovish) and C.Waller (centrist) are due to speak.

US Dollar Index relevant levels

Now, the index is advancing 0.37% at 95.87 and a break above 96.24 (2021 high Nov.17) would open the door to 97.00 (round level) and then 97.80 (high Jun.30 2020). On the flip side, the next down barrier emerges at 94.96 (weekly low Nov.15) followed by 94.56 (monthly high Oct.12) and finally 93.87 (weekly low November 9).

This article was originally published by Fxstreet.com.Read the original article here.


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