US Dollar Dips as Markets Focus on Positive Developments Surrounding Reopening of Economies

The US dollar is trading weaker as the market sentiment improves over the reopening of economies, sending traders away from the safe haven

US Dollar Dips as Markets Focus on Positive Developments Surrounding Reopening of Economies

On Tuesday, the US dollar is trading weaker as the market sentiment improves over the reopening of economies, sending traders away from the safe haven greenback and towards riskier currencies. At the time of writing, the US dollar index DXY is trading around 99.63.

The start of the week saw a quiet trading session as most markets were closed due to public holidays, but the return of risk appetite has bolstered confidence in trading riskier instruments while sending the US dollar lower. However, the losses remain limited as US-China tensions also weigh on markets and keep traders from feeling too optimistic about economic recovery just yet.

In recent weeks, the market sentiment had stated improving as more countries signalled their interest in lifting lockdown restrictions and restarting economic activity. Amid the coronavirus pandemic driven recession, reopening of economies offers a glimmer of hope that the global economic recovery could get underway soon.

However, relations between the US and China continue to worsen ever since the Trump administration held China responsible for concealing the severity of the outbreak from the would, which led to an escalation of trade tensions. Diplomatic ties between the two world leaders have also come under strain of late over the US’s recent closeness with Taiwan even as China prepares to impose a national security law on Hong Kong.

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.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers