USD Bulls Driving Higher with DXY Pushing Back Above the Psychological 100 Mark

The USD bulls are further pressing to the upside, following the big rebound staged at the start of the week.

Upside pressure has seen the dollar rising for a third straight session against most of its peers. The greenback's gains were supported initially after comments from the U.S. President Donald Trump and his verbal attacks on China, raising fears of a new trade war.

On Tuesday, a boost was given to USD, after the Euro came under heavy selling pressure. EUR had been slammed in the session, following the questioning from German lawmakers on the ECB’s stimulus measures. It has created some worry and potential political tensions between Germany and the rest of the EU. More importantly, this stimulus is very much needed by the Eurozone to support the bloc.

In the session on Wednesday, GBP was beaten on the back of an awful UK construction PMI report. Britain’s construction sector was hit with by far its biggest contraction since the launch of the survey 23 years ago as the coronavirus lockdown shuttered building sites and suppliers. The downside pressure for the pound was another helping hand for the USD bulls.

Technical observations

The DXY has managed to reclaim the psychological 100 level, with further moves to the north still eyed. Technically, the triple bottom structure as shown in the chart is subject to playing out, with a break of the neckline a possibility.



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