The dollar was volatile, with DXY trading within a 92.013-92.804 range. The low was hit just before the Markit PMI data which excelled expectations, providing a boost to the dollar amid an outflow of havens, which perhaps triggered a short squeeze and kept driving the greenback to the highs, which eventually weighed on equities. The consensus view has been short USD after the US election, and seeing counter-consensus moves extend was a risk, some analysts suggested. As equities managed to stage a slight rebound in the afternoon, the dollar reversed its initial spike but remained above 92.50. Analysts at ING write "with DXY so close to the lower end (91.75/92.00) of its four month trading range and positioning not too stretched, we’d say the downside could prove vulnerable".
