The USD has continued to bounce and slowly clawed its way back yesterday, along with stocks.
The main number of interest was consumer confidence which was well down on expectations and really reflecting the fundamentals at the moment.
Bond yields managed to stabilize after being very active recently, but we are seeing more talk and markets starting to price in US rate cuts this year, which was really unthinkable not all that long ago.
Stocks ended the session a little higher after some positive talk from some of the major banks about the state of the yield curve and the inversion. MS said that compared to other recessions, the size of the inversion isn’t as big – yet. So there is still some hope here.
The USD Outlook
The DXY bounced off the key support level at 96.00 and has now ticked back through the 96.50 mark.
95.00 is the major support below, along with 96.00 while 96.50 will now be key resistance/support.
97.00 is the next level that the DXY will need to contend with above and there should be some sellers there for sure.