The USD Index (DXY), which tracks the Greenback vs. a basket of its main competitors, gathers further selling pressure and challenges the key support at the 101.00 region on Wednesday.

USD Index on the defensive on rising risk-on trade

The index drops to multi-day lows and revisits the 101.00 neighbourhood on the back of the acute bounce in the risk-associated assets, eroding at the same time the strong advance seen in the previous session.

No news from the macro scenario, where the recent resurgence of banking jitters sponsored the return of the risk aversion on Tuesday and propelled the index to the proximity of the 102.00 region.

In the meantime, investors continue to favour a 25 bps rate hike by the Fed at the May 3 event, although the probability of that outcome shrinks a tad to around 75% (from nearly 90% a day ago).

In the US data space, MBA Mortgage Applications rose 3.7% in the week to April 21, while Durable Goods Orders expanded at a monthly 3.2% in March and advanced figures saw the trade deficit shrinking to $84.6B also in March.