US Dollar Index looks set for a bounce – SocGen

The correction in the Dollar over the past week is spectacular, if not exaggerated. In the view of economists at Société Générale, the US Dollar Index is set to rebound.

DXY is technically oversold and could be due a rebound

“The DXY is technically oversold and could be due a rebound if US Retail Sales today exceed forecasts, Fed speakers lean against lower repricing of the terminal rate, or in the worst case, the situation escalates between NATO and Russia.”

“Technically, the Dollar Index looks set for a bounce if it manages to avoid sliding below the 200-DMA at 104.90 and 104.60, the August low.”

See – US Retail Sales Preview: Forecasts from seven major banks, big boost in October