• The index attempts a mild rebound to the 102.40 region.
• Investors continue to digest Friday’s Nonfarm Payrolls figures.
• Fedspeak, Wholesale Inventories next on tap in the US docket.

The greenback, in terms of the USD Index (DXY), regains some composure following Friday’s post-NFP sharp sell-off and revisits the 102.40 zone at the beginning of the week.

USD Index now looks at Fedspeak, CPI

The index picks up some buying interest following two consecutive daily pullbacks on Monday as investors continue to adjust to Friday’s release of the June Payrolls ( 209K jobs), while expectations for a 25 bps rate hike remain largely unchanged for the time being.

On the latter, CME Group’s FedWatch Tool sees the probability of such a scenario at around 92% against the backdrop of the ongoing resilience of the US economy and the still tight labour market.

On the speculative front, net longs in the USD receded to 3-week lows in the week ended on July 3, a period where the index entered some consolidative range prior to the release of the crucial jobs report