The Dollar Index (DXY) firmed for a 3rd consecutive week. Better than expected prelim PMIs and still-hawkish Fedspeaks were the main drivers underpinning USD strength, OCBC Rates Strategist Frances Cheung notes.

Mild bullish momentum is still intact

“DXY was last at 105.46. Mild bullish momentum on daily chart intact while RSI rose. Risks skewed to the upside. Resistance at 105.75/80 levels (76.4% fibo).”

“Breakout puts 106.20, 106.50 in focus. Support at 105.20 (50 DMA), 104.80/90 (61.8% fibo retracement of Oct high to 2024 low, 21 DMA) and 104.50 (200 DMA).”

“We also note that ½-yearly end and month-end flows may have the potential to distort price action later this week. US presidential debate on Fri (9am SGT) may also be of interest to FX and rates markets.”