FXStreet notes that the Q1 DXY recovery was repeatedly interrupted by multi-day setbacks, but so far in April, it has slipped almost every day without respite. Economists at Westpac are looking for more DXY downside, with U.S. yields contained by Powell’s resolutely dovish stance and Europe rebound optimism building as vaccinations gather pace. 

“DXY poised for more weakness with US yields contained by Fed Chair Powell’s resolutely dovish stance and pessimism toward Europe continuing to moderate on the vaccination and fiscal fronts.” 

“DXY could make a last-ditch attempt to prove itself if April payrolls blow past expectations. An outsized 1mn+ gain would sustain hopes the US can claw back the outstanding 8.4mn pandemic job losses sooner than expected.”