The United States Dollar consolidated its position for much of Tuesday as the quiet economic calendar left investors to ponder the recent US-Mexico trade deal. With the US Dollar Index (DXY) opening this morning at 94.72, the general tone of the USD remains consistent with the start of the week.
The US-Mexico Trade deal continues to dominate market sentiment in the absence of any new headlines or data. The positive news saw investors shift gears and support a ‘risk-on’ mood in global markets. While the currency movements have been modest, the market nevertheless, continued favouring USD counterparts as it awaits further news from the US-China trade front.
The USD was otherwise still weighed down by Jerome Powell’s dovish speech on Friday but also found assistance from the US CB Consumer Confidence figure which jumped to 133.4. The reading is the highest since November 2000 and helped the Greenback shrug off some of its negative movements. Overall, fortunes were mixed for the US Dollar in overnight trading with investors treading water ahead of any substantial news.
Attentions now turn to Preliminary GDP Quarter on Quarter numbers and the Crude Oil Inventories for direction, while keeping a close eye on the headlines.