US Dollar Gains as Risk Sentiment Worsens, Other Currencies Weaken

The US dollar continues to hold on to its recent gains and is trading close to a one month high after its safe haven appeal strengthened

US Dollar Gains as Risk Sentiment Worsens, Other Currencies Weaken

On Wednesday, the US dollar continues to hold on to its recent gains and is trading close to a one month high after its safe haven appeal strengthened as the risk sentiment soured in markets. At the time of writing, the US dollar index DXY is trading around 93.49.

Equity markets slid lower during the previous session, sending investors towards the safety of the greenback and away from riskier instruments like stocks. In addition, falling crude oil prices weakened commodity currencies and further boosted the appeal of the US dollar.

The dollar is also trading stronger in anticipation of the upcoming ECB policy meeting due later in the day, with traders keeping an eye out for possible steps by the central bank to counter the recent strengthening of EUR/USD. The Euro had risen above the 1.20 level against the dollar in recent sessions, but could slide lower if the ECB sounds more dovish than expected.

The GBP is also exhibiting weakness against the dollar over growing fears of a possible no-deal Brexit once again. Meanwhile, the Canadian dollar fell to the lowest level in three weeks against the USD after WTI crude oil lost almost 8% of its value during the previous session.

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