The US Dollar recovers initial weekly losses as market sentiment worsens on Wednesday. Markets are licking their wounds, with most equity indices in the red across the globe. The US Dollar Index jumps sharply back above 104.50. The US Dollar extends its recovery on Wednesday, supported by comments from the Federal Reserve Bank of Minneapolis President Neel Kashkari, who spooked markets on Tuesday. Kashkari suggested that a rate hike could still be a possibility this year.
34, and sent the DXY in a turnaround back up above 104.50. The question will be how long it will last, with the focus shifting to the Q1 US Gross Domestic Product second estimate numbers on Thursday and the Personal Consumption Expenditures Price Index for April on Friday. On the upside, the DXY index needs to reclaim key levels it lost last week: the 55-day Simple Moving Average , currently at 104.82, and the 105.00 big round level. Further up, the following levels to consider are 105.