The US Dollar (USD) is showing mixed performance in calm trading sessions, according to analysts at Scotiabank. While the USD has been relatively firm over the day and week, there are signs of softer technical signals emerging in longer-term price movements in the Dollar Index (DXY). This indicates that market sentiment toward the USD may be becoming less optimistic after its strong start to the year.
To sustain its momentum, the USD would require additional support from higher yields or stronger economic data. Recent solid US Treasury auctions suggest investor confidence, with the 10-year yield approaching recent highs at around 4.20%.
