US dollar index DXY

US Dollar Trades Steady, Still Supported by Growing Optimism About US Economy

Posted Tuesday, January 21, 2020 by
Arslan Butt • 1 min read

Early on Tuesday, the US dollar has slid slightly lower after touching the highest level of this year in the previous trading session, buoyed by optimism about the health of the US economy. At the time of writing, the US dollar index is trading around 97.59.

The greenback had strengthened on Monday following recent economic data releases which revealed that the US economy is performing well in recent times. The US dollar has dipped slightly since then amid thin volatility on the back of a holiday in the US markets on Monday.

Markets are experiencing thin trading volumes in today’s Asian session as well as the Chinese New Year holiday approaches. The dollar is also trading stronger as its other major peers perform poorly in the wake of disappointing economic data releases, especially from the Eurozone.

The US dollar is also enjoying some support from an improvement in sentiment following the signing of the US-China phase one trade deal last week. Markets remain upbeat that better trade relations with China will support economic growth in the US in the coming months.

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