USD Index set to retest the 104.55/104.60 peaks seen at the start of the week – Scotiabank

The US Dollar Index (DXY) rebounds from the 104.00 area. Economists at Scotiabank analyze Greenback’s outlook.

DXY is showing some signs of short-term technical strength

The DXY is showing some signs of short-term technical strength, with the index basing around the 104.00 area on Wednesday; gains today may be setting the index up for a retest of the 104.55/104.60 peaks seen at the start of the week.

Markets may be giving the USD a bit of a lift ahead of Friday’s annual US CPI revisions – not usually a big issue for markets until last year’s surprising and quite significant upward revisions.