• DXY Index notes a slight uptick, currently trading near 106.00 mark.
• March Retail Sales exceed forecasts, bolstering bond yields and the US Dollar.
• Fed appears hawkish, adjustments to easing expectations produced Greenback rally last week.

The US Dollar Index (DXY) is currently trading higher near 106.05 on Monday, slightly down from its peak of 106.10 hit last week. Strong economic data continues to favor the hawkish rhetoric from the Federal Reserve (Fed), and the Greenback benefits from rising US Treasury yields. Tensions between Israel and Iran also contribute to a cautious market mood, which tends to favor the US Dollar.

The US economy shows robustness with Q1 growth indicating resilience and rising consumer spending backed by sturdy labour demand. The Fed's stance leans toward hawkishness, adjusting its easing expectations and starting to signal a delay in rate cuts, buoyed by continuous robust growth and persistent inflation.