The USD Index (DXY) partly dropped from the optimistic view reflected at last week’s end and slipped back below the 113.00 range on Monday.
The index experiences some moderate downside resistance and probes the sub-113.00 zone at the start of the week in a context favourable to the risk complex. At the same time, declining yields also accompany the downtick in the buck.
Investors’ prejudice towards high-risk assets tests the dollar triggers the corrective shift in the index against an unchanged macro scenario. The Feds are expected to further hike the interest rate by 75 bps at the well-anchored November 2 meeting.
Furthermore, CME Group’s FedWatch Tool reflects the probability of a ¾ point raise at almost 97%.