Where's the dollar strength going to come from?
Equities have had a bounce!
There's maybe some technical reasoning here.
The 100 daily exponential moving average has shown some support.
I'd argue though that it's more to do with weakness outside of the US and a forced rotation into US equities after the threat of more lockdowns and the financials facing weakness yesterday saw broad weakness on European bourses.
But I want to focus on USD here since, in my view, starting from what the dollar is doing is the most important aspect of taking a top down approach to markets.
Above is the dollar index -
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