USD INDEX RETREATS FOR TOPS PAST THE 103.00 MARK

The greenback, in terms of the USD Index (DXY), extends the optimism seen last Friday and briefly surpasses the 103.00 barrier on Monday.

USD Index appears bid ahead of data

The index could not sustain the initial bull run past the 103.00 hurdle amidst some recovery in the risk complex, although the risk-off mood appears to prevail so far in the European morning.

In the meantime, the uptick in the dollar looks underpinned by the, for now, mild recovery in US yields following Friday’s retracement, while some speculation pointing to a 25 bps rate hike at the May event also collaborates with the dollar’s upbeat mood at the beginning of the week.

Later in the session, all the attention will be on the release of the always relevant ISM Manufacturing seconded by the final Manufacturing PMI, both prints for the month of March. In addition, February’s Construction Spending and the speech by FOMC L. Cook (permanent voter, centrist) are also due.