The US Dollar marginally retreated in overnight trading, slowly unwinding from its position of strength for much of the week. The US Dollar Index fell 0.04% against a basket of currencies as risk appetite slightly returned to the market.
It was a mostly benign day in FX markets as no new news on the trade dispute came to light. The market mostly gyrated within a tight range as the pall of Trumps trade tariffs weighed on market sentiment. Uncertainty about what’s next in the China-US trade dispute, as well as its implications on global growth also left the majors trading within familiar levels. Nevertheless, there was some small movements as marginal improvements in risk appetite led to a small appreciation in some risk-aligned currencies.
Moving into Wednesday, the Greenback turns to the m/m PPI reading for direction with a close eye on the headlines as well.