US Dollar declines on quiet Monday, markets await drivers

The US Dollar Index softens towards 107.00.

Profit-taking after steep rallies in November pressured Greenback lower.

Expectations for a lower U.S. corporate tax rate and a wave of deregulation should boost foreign portfolio and FDI flows to the US.

The US Dollar Index (DXY) retreated from its fresh two-year high on Friday, softening towards 107.00. The US calendar won’t feature any major highlights on Monday’s session. 

The US Dollar Index (DXY) remains bullish despite a recent pullback from a two-year high. Strong economic data and a less dovish Federal Reserve stance support the index's upward trajectory. In addition, geopolitical jitters from the Russian-Ukraine war has contributed to the upside.