• US Dollar Index fades bounce off two-month low, dribbles after four-week downtrend.
• Challenges to sentiment, recently hawkish Fed bets put a floor under the DXY price.
• Fears of US recession, threats to USD’s reserve currency status prod US Dollar Index bulls.
• Easter Monday to restrict market moves, US CPI, Fed Minutes in focus.

US Dollar Index (DXY) retreats to 102.00, after posting an ephemeral bounce off the two-month low during the last week. Even so, the greenback’s gauge versus six major currencies dropped in four consecutive weeks and prints mild losses by the press time as markets consolidate recent moves amid the Easter Monday holiday.

It’s worth noting that the recently firmer bets on the Federal Reserve (Fed) joined an absence of disappointment from the US employment report to put a floor under the DXY price. On the same line could be the geopolitical fears surrounding China. However, concerns about the US recession and challenges to the US Dollar’s reserve currency status exert downside pressure on the US Dollar Index.

That said, Taiwan President Tsai Ing-wen’s US visit triggered a fresh bout of US-China woes as Beijing conducts strong military drills near Taiwan Strait. “China's military simulated precision strikes against Taiwan in a second day of drills around the island on Sunday, with the island's defense ministry reporting multiple air force sorties and that it was monitoring China's missile forces,” reported Reuters.