US Dollar in Trouble as Markets Cautiously Await Earnings Reports

The US dollar is trading cautious early on Tuesday as the market sentiment continues to be dominated by the coronavirus pandemic and its

US Dollar in Trouble as Markets Cautiously Await Earnings Reports

The US dollar is trading cautious early on Tuesday as the market sentiment continues to be dominated by the coronavirus pandemic and its impact on the global economy. At the time of writing, the US dollar index DXY is trading around 99.19.

Even as headlines from around the world indicate no signs of the pandemic slowing down yet, traders are now worried about how this has affected companies’ earnings over the last quarter. Even though numerous organizations and economists have warned about the possibility of a deep economic recession, a look at corporate earnings will be able to paint a clearer picture of the extent of financial damage caused due to the virus.

Even though news reports look for signs of the coronavirus pandemic peaking in the US, the worst affected country worldwide, economic data releases are increasingly turning more pessimistic and adding to the strain on the US dollar. The dollar has also weakened after the latest trade data from China revealed a decline in exports and imports during Q1 2020 on account of coronavirus.

The risk-off sentiment prevails in financial markets and the weakness in the US dollar has failed to give a boost to other riskier currencies such as the AUD and NZD for now. Meanwhile, the safe haven Japanese yen continues to refer strong against the dollar, holding above a two-week high level for now.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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