Even with the risk aversion-led lift for the USD on Wednesday, the DXY was unable to break out of its week-long consolidation range and broader price trends still lean bearish for the US Dollar Index.

Note that the DXY is pressuring consolidation support in the low 102 area today.

Recall that US equity market outperformance through December rather suggests that passive hedge rebalancing flows will run against the USD through month end; while markets look relatively calm and trade flows appear to be thinning out, there may still be motivation to push spot rates around after all.