Upside risks for the USD are still rather limited - Scotiabank

Analysts at Scotiabank explained that the USD is trading on a firmer footing overall, allowing the DXY to extend through recent highs around the 96 level to reach its highest point since Aug. 

Key Quotes:

"The broader market tone remains somewhat cautious, however; European stocks have strengthened but US futures remain in the red, commodity prices, ex gold, retain a soft undertone and there is a clear, broad bid for developed market bonds (peripheral European debt again out-performing modestly)."

"The USD is perhaps taking advantage of weaker data and political uncertainty in Europe, with the EUR and GBP notable under-performers on the day. Despite weak commodity prices, the AUD, CAD and NZD are holding up relatively well in the face of the stronger dollar. There are grounds for thinking that, despite today’s gains, upside risks for the USD are still rather limited."