The dollar is the top performer today
The rally in the US dollar today helps to erase some of the year-end weakness in the dollar but the Dollar Index still hasn't been able to climb above the 2020 highs. That suggests the downtrend is still intact.
Looking ahead, the market is going to shift its attention to US economic data but I don't think it will be soon. Tomorrow we get the ADP jobs report and on Friday it's non-farm payrolls but there isn't really a scope for the Fed to shift in either direction unless we get a few months of soft numbers.
The bigger flows might be in emerging markets and the flows around global growth expectations. One interesting spot to watch is USD/CNY. There the dollar is falling today today and it slipped below the 200-day moving average for the for the first time since May.
