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  • DXY navigate multi-day lows in the 99.40 region.
  • Investors’ attention now shifts to the US earnings season.
  • Retail Sales, Industrial Production, Fed’s Beige Book all out this week.

The greenback has started the week on a bearish note, with the US Dollar Index (DXY) hovering around the area of 2-week lows near 99.40.

US Dollar Index looks to corporate earnings, weekly data

The index is extending the downside for the third session in a row on Monday, as markets are slowly returning to normalcy following the Good Friday holiday.

In the meantime, and always with the developments from the coronavirus in centre stage, market participants will closely follow the start of the US corporate earnings season kicking in on Monday.

Moving forward and in the US data space, Retail Sales, Industrial Production, the Fed’s Beige Book and the Philly Fed index will be in the limelight later in the week.

What to look for around USD

DXY has started the second consecutive week in a bearish bias following the recently announced Fed measures and further deterioration of the US labour market. In the meantime, all the attention remains on the COVID-19 amidst countries extending their lockdown periods, speculation of a global recession and further deterioration of fundamentals. On the supportive side for the buck, market participants seem to prefer the dollar vs. other safe havens like the Japanese yen and the Swiss franc in cases when risk aversion kicks in, all helped by its status of “global reserve currency” and store of value.

US Dollar Index relevant levels

At the moment, the index is receding 0.07% at 99.41 and faces the next support at 99.36 (weekly low Apr.9) followed by 98.94 (55-day SMA) and finally 98.27 (weekly low Mar.27). On the flip side, a break above 100.49 (78.6% Fibo retracement of the 2017-2018 drop) would open the door to 100.93 (weekly/monthly high Apr.6) and then 101.34 (monthly high Apr.10 2017).