Dollar Mixed in Tuesday’s Trading

The US dollar demonstrated a mixed performance during Tuesday’s trading. The currency slid against some majors, like the euro and the Japanese yen, but gained on the Great Britain and was firm versus commodity currencies.
The dollar got limited support from risk aversion caused by poor Chinese trading data, allowing the currency to gain against its growth-related counterparts. Meanwhile, falling consumer prices in Britain drove the sterling down against the greenback.
Yet the outlook for delayed monetary tightening still weighs on the US currency. The CME FedWatch shows just 33 percent probability of an interest rate hike in December (down from 37 percent yesterday). The major component in the dollar’s strength has been expectations of a rate lift-off, and without such supporting factor the greenback becomes very vulnerable.
EUR/USD gained from 1.1357 to 1.1381 as of 18:02 GMT today. USD/JPY fell from 120.02 to 119.77 and USD/CHF declined from 0.9624 to 0.9582.

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *