XE Market Analysis: Asia – May 11, 2021

The DXY dropped under the 90.00 mark for the first time since February 25, bottoming at 89.98 before bouncing slightly to 90.19 highs. The break under 90 appeared to have prompted some USD short covering, as major currencies all pulled back from their trend or near trend highs. Repositioning ahead of Wednesday’s key U.S. CPI report could have been at play this morning, as a hotter than expected inflation reading could benefit the USD through higher Treasury yields.