Dollar looking lower [Video]

Markets finished last week in risk-on mode after US CPI came out at 2.9%, right in line with expectations. Since there were no surprises in the report, the dollar moved lower, as Powell will most likely be looking to cut rates by 25 basis points this week, with even a chance of a 50 basis point cut. As a result, the dollar is coming down, while US stocks are trading near the highs. Looking at the dollar index, we are anticipating further decline after a perfect turn from the 61.8% level. In fact, the current sideways move around 97.60 suggests a its a minor correction, with the risk of heading lower this week, potentially below 97.20. At the same time, US yields are a bit higher, but resistance for a wave four flat correction is around 4.10%.