DXY staged a decent rebound yesterday,.......>

DOLLAR: DXY staged a decent rebound yesterday, erasing most of Friday's sell-off

largely driven by month-end flows. The recovery was underpinned by better than

expected Markit M'fing PMI & ISM M'fing readings, with the latter registering

above the 50.0 breakeven level for the first time since July 2019. Yesterday's

advance resulted in a clean break above the 50- & 200-DMAs & the formation of a

bullish Harami candlestick pattern, which bodes well for DXY.

- The index sits +2 pips at 97.82. Bulls look for a move through the 100-DMA at

97.85 before attempting a move at the Jan 29 high of 98.19. Bears look at the

23.6% retracement of the Jan rally/200-DMA at 97.76/73 as their initial target.

Below opens the 50-DMA at 97.50.

- The Iowa caucuses have just kicked off, with CNBC tweeting that they're too

early to call. They are closely watched as a potential bellwether for the final

Democratic nomination. Betting markets have recently priced an increasing chance

of a Sanders victory in Iowa. However, as per our political risk analysis piece,

the nationwide race remains a close call.