The US Dollar Index (DXY) has given up some of its gains from yesterday and is trading near 106.25. A break under the 200-Day Moving Average (DMA) at 105.43 would set up a test of the August 10 low near 104.63, economists at BBH report.

Near-term USD weakness is likely

“The 200DMA provided support yesterday and come s in near 105.434 today. A clean break below would set up a test of the August 10 low near 104.636.”

“While we still like the Dollar higher due to our constructive fundamental outlook, we acknowledge that near-term Dollar weakness is likely until the Fed narrative shifts once again in our favor.”