The US dollar retreated marginally in trading yesterday, losing some ground against most currencies. The US Dollar Index (DXY) shed 0.27% on the day to open at 95.15 against a basket of currencies.
With little on the economic calendar to drive markets, investors took stock of current trading conditions and moved within a tight range for much of the session. Between a surprisingly strong jobs report and a further escalation in the US-China trade war, the dollar took the initiative early in the week and extended its gains from Friday only to slowly lose some of that ground throughout the American session. Nevertheless, the USD remains firmly on the front foot, moving into Tuesday.
The catalyst for the DXY retreat came from Europe with sterling and euro both appreciating marginally against the Greenback after EU Chief Negotiator Barnier noted a potential timeline for a Brexit Deal. Commodity currencies, however, didn’t fare so well with the CAD, NZD and AUD among the worst performers on the day.