US dollar looks ripe for a bounce - IG analyst

With market positioning wildly short and technicals look a touch oversold, the US dollar is looking ripe for a bounce, Kyle Rodda, market analyst for IG Australia, tweeted. Rodda, however, isn't sure whether the greenback would see an immediate bounce and how long it will last. "Perhaps it'll come from a bit of January repositioning," Rodda said. 

The dollar index, which tracks the value of the greenback, is currently seen at 89.93, having hit a 32-month low of 89.73 on Thursday. The currency has declined by 6.8% this year and is widely expected to fall by at least 5% in 2021.