The US dollar today demonstrated a mild recovery against its main peers during the early North American session boosted by the stronger US Dollar Index. The US Dollar today demonstrated a recovery trend against the euro and the Japanese yen initiating a brief pause in the selling pressure that has plagued the currency since last week.
The US dollar’s mild recovery was tracked by the US Dollar Index, which was trading at 100.38 at the time of writing having hit a daily low of 100.02.
The greenback’s mild recovery was triggered by the modest recovery in the US treasury bond yields, which had a direct effect on the US Dollar Index. Hawkish comments by Charles Evans, the President of the Chicago Fed, did little to boost the US dollar given that negative comments by Neel Kashkari, the Minneapolis Fed, regarding the Fed’s inflation forecasts had dampened the currency’s recovery.
The greenback’s modest recovery was also largely affected by the FOMC‘ dovish rate hike last week, which weakened the currency by increasing the selling pressure on the greenback. The US dollar’s recovery was also hindered by its stronger peers such as the British pound and the euro.
The currency’s future performance is likely to be affected by President Donald Trump‘s speech as well as speeches by the Fed’s Mester and George, all scheduled for tomorrow.
The GBP/USD was trading at 1.2346 as at 17:03 GMT having declined from a high of 1.2435 during the European session. The EUR/USD was trading at 1.0739 having hit a high of 1.0775 earlier today.
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