The USD Index (DXY), which tracks the greenback vs. a bundle of its main rival currencies, managed to set aside part of the weekly bearish note and advance to the 102.70 region on Wednesday.

USD Index focused on Powell, risk trends

The index takes advantage of the prevailing risk off tone following the opening bell in the Euroland and reverses two straight sessions with losses on Wednesday.

The ongoing recovery in the US Dollar comes amidst inconclusive performance in the US money markets, where yields across the curve hover around Tuesday’s closing levels so far.

In the meantime, investors are expected to closely follow the participation of Chair J. Powell in a Policy Panel Discussion at the ECB Forum on Central Banking in Sintra (Portugal). It is worth noting that both the Federal Reserve and the European Central Bank are anticipated to hike their interest rates by 25 bps at their meetings in July.

In the US data space, usual weekly MBA Mortgage Applications are due in the first turn, seconded by flash Goods Trade Balance figures for the month of May.