The USD is powering on, reaching a new 20-year high in the US Dollar Index (DXY). Now, there is no technical until the 121 level, economists at Scotiabank report.

USD gains as risk backdrop deteriorates

“Weak risk sentiment provides the essential drive behind the USD amid surging long-term yields and overwhelmingly bearish equity investor sentiment.”

“With the DXY trading well through the 109/110 area this week, there is nothing in terms of technical resistance on the long-term DXY chart now until the 121 point, the 2001 peak.”