US DOLLAR INDEX: DXY BULLS FLEX MUSCLES AROUND 102.50, YIELDS, FED BETS IN FOCUS AS FULL MARKETS RETURN

That said, the US Dollar Index previously traced firmer US Treasury bond yields while cheering mostly upbeat US employment numbers and hawkish Fed bets. Adding strength to the US Dollar is the currency’s haven demand amid the geopolitical fears emanating from China, mainly concerning Taiwan.

Against this backdrop, Wall Street benchmarks closed mixed while the US 10-year and two-year Treasury bond yields rose to 3.41% and 4.0% at the latest. It should be noted that the CME’s FedWatch Tool suggests 72% chance of the Fed’s 0.25% rate hike in May, versus 57% odds favoring the same in the last week.

Moving on, multiple Fed policymakers are up for speeches and can entertain the US Dollar Index (DXY) traders. However, major attention will be given to the yields and Fed bets for clear directions ahead of Wednesday’s US Consumer Price Index (CPI) and Fed Minutes.