US Dollar Trades Lower as Risk Appetite Improves in Financial Markets - Forex News by Strategia Forex
US dollar index DXY

US Dollar Trades Lower as Risk Appetite Improves in Financial Markets

Posted Tuesday, September 10, 2019 by
Arslan Butt • 1 min read

Early on Tuesday, the US dollar is trading slightly lower against its peers over renewed risk appetite turning investors towards riskier currencies. At the time of writing, the US dollar index DXY is trading at around 98.37.

The risk-on sentiment in the market was boosted by hopes of stimulus measures being rolled out to support the German economy. In addition, the risk of no-deal Brexit has reduced over the ongoing political developments taking place in Britain over the past few days, which has also helped improve the mood in the markets.

Germany is planning a “shadow budget” by forming independent public agencies that can handle additional debt and bypass the government’s strict national debt rules. If this works out, the government may be able to prevent the German economy from slipping into recession.

Meanwhile, on the trade war front, US Treasury Secretary Steven Mnuchin remarked on Monday that negotiations on a trade deal have made “a lot of progress”, which has increased expectations for a possible resolution to the ongoing trade dispute. He added that the US was prepared to negotiate and work towards a trade deal with China. Mnuchin also expressed optimism for the US economy, stating that he didn’t see any impending signs of a recession in the economy.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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