Dollar Index Rises 0.4% Above 105, Impacting Risk Assets

The U.S. Dollar Index ($DXY) has shown significant movement over the past few days, with a notable increase of 0.4%, pushing it above the 105 level. This rise has been supported by the 200-day moving average, which it has held for several weeks despite appearing to break under. Market analysts are closely watching the Dollar Index as its fluctuations are impacting risk assets. A dip in the Dollar Index has been correlated with a bump in risk assets, indicating a potential shift in market sentiment. Observers note that the Dollar Index is starting to get overbought on shorter time frames but shows a trend flip on longer time frames, suggesting a waiting game for the next significant move. The next move on May 29 is key for risk.