Markets are in a risk-on phase when looking at stocks, but it's a completely different thing when looking at yields, which are still trending up.
The question is which is right and which is wrong? Well, I think that now that stocks are at highs, there will be more and more buyers trying to take advantage of this streak, so the dollar will be exchanged for stocks, and this is what can make the dollar go down, or at least prevent it from rise too much.
However, the important event this week will be the US CPI tomorrow at 14:30 CET, when the market expects a drop of 3.4% to 2.9% year-on-year. If we look at the DXY, it is still a corrective rally, expecting a high in this 104-105 zone.
