FXStreet reports that economists at Westpac said that the US Dollar Index (DXY) looks set to test higher levels near term. 

“DXY looks determined to test the top-end of a rough 91-93 range that is likely to form in coming weeks.”

“Fed officials have resoundingly underscored their dovish policy track, anchoring the front-end, but long end-yields remain another matter. DXY weighted 10yr spreads have fully retraced the 2020Q1 pandemic collapse.” 

“The medium-term USD bear trend has been adjourned, until sometime in 2021H2. By then Europe should surely have her vaccination act together and second derivative US rebound measures will probably be cresting.”