US DOLLAR INDEX: BEARS REMAIN IN CONTROL WELL BELOW 108.00

• The index extends the corrective downside to multi-day lows.
• The appetite for the risk complex picks up pace on Monday.
• The NAHB Index, TIC Flows next on tap in the NA session.

The greenback, when tracked by the US Dollar Index (DXY), remains under the influx of sellers and visits the area of multi-session lows in the 107.50 zone at the beginning of the week.

US DOLLAR INDEX WEAK ON RISK-ON MOOD

The index adds to Friday’s pullback and starts the new trading week on the back foot against further improvement in the risk complex. Indeed, the dollar clinches the second daily decline in a row following last week’s cycle peaks north of the 109.00 mark (July 14).

The dollar appears offered as market participants continue to evaluate recent comments from Fed’s rate setters, who somewhat discarded a full point interest rate hike at the July 27 event.

Adding to the upbeat tone among investors, long-term inflation expectations are expected to ease in July, as per the advanced figures from the U-Mich Index published on Friday.