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Chart of the Day - Tuesday, January 3rd, 2023

January 3, 2023

Today’s Chart of the Day was shared by Ian Culley (@IanCulley). The US Dollar kicked off the new year today with its best day in nearly three months, rising 1.15%. As you probably know, Dollar strength was one of the biggest headwinds for stocks and risk assets last year. After correcting almost 10% from its September peak, Ian points out that it's finding support at the 2016/2020 highs around $103. Seasonality also points to a stronger Dollar in the near term, with January being the best month for $DXY on average over the past four decades. After a three-month correction, this would be a logical place for the Dollar to rebound.