Potential return to the 95 handle for DXY

7 May 2020

With the FED futures funds rate expecting to be negative for 2021 and their open-ended QE program, we may see some US$ selling pressure as investors could sought after more risk-on safe havens, such as the JPY, CHF or AUD. The expectation for a growth decline is posing catastrophic numbers and with a recent positive correlation trend (negative date and positive USD) - this may be set to change. However, other key Central Banks could follow the same approach and a surge to cash could also continue. Key market to watch.

The $94.65 mark is the 100% retracement move from the March low.