USD INDEX DROPS TO 4-WEEK LOWS NEAR 103.70

The greenback, in terms of the USD Index (DXY), remains on the defensive and breaks below the 104.00 support for the first time since mid-February.

USD Index weaker ahead of US CPI

The index retreats for the third session in a row and breaches the 104.00 level at the beginning of the week, as investors continue to reprice the next interest rate hike by the Federal Reserve at the March 22 meeting.

Following Friday’s mixed results from Non-farm Payrolls, the greenback saw its decline gather extra steam amidst rising bets for a 25 bps rate raise, while the Silicon Valley Bank (SVB) crisis did not help the buck either.

Absent releases in the US data space on Monday, the focus of attention is expected to remain on the publication of inflation figures tracked by the CPI for the month of February, due on Tuesday.