The Dollar was lower on Monday in N.Y., taking a breather from the sharp gains seen following the hawkish FOMC last week. Position squaring was a factor, which saw the DXY fall from London highs of 92.37 to afternoon lows of 91.83. There was no data on Monday to move markets. Wall Street put in a solid relief rally after getting tanked last week, while Treasury yields firmed up as well. After a brief consolidation period, we expect the USD to rise further, as incoming U.S. data is expected to continue to point to sharply higher growth in H2.

The dollar has consolidated at modestly softer levels after rallying strongly last week. The DXY dollar index drifted to levels around 92.20, down from Friday’s two-month high at 92.40. EUR-USD concurrently lifted to the upper 1.1880s from Friday’s two-month low at 1.1846. The yen continued to outperform, with USD-JPY pegging a one-week low at 109.71 while EUR-JPY and AUD-JPY printed respective a two- and four-month lows.

The dollar has consolidated at modestly softer levels after rallying strongly last week. The DXY dollar index drifted to levels around 92.20, down from Friday’s two-month high at 92.40. EUR-USD concurrently lifted to the upper 1.1880s from Friday’s two-month low at 1.1846. The yen continued to outperform, with USD-JPY pegging a one-week low at 109.71 while EUR-JPY and AUD-JPY printed respective a two- and four-month lows.