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The US Dollar Index has continued its rally for the third consecutive day, with the index posting its highest daily close since November of the previous year. Despite negative sentiment, US Treasury yields remained around 4.54%, while the Dow Jones and Nasdaq declined by 1.15% and 1.54%, respectively.
Economic data released on Tuesday showed a deterioration in consumer sentiment and a larger-than-expected decline in New Home Sales.
The deterioration in market sentiment has added fuel to the Dollar’s rally, but a correction is overdue, particularly for the Euro and the Pound. AUD/USD was impacted by negative sentiment and declining commodity prices, causing it to slide below 0.6400 and approach September lows at 0.6355.
EUR/USD failed to hold above 1.0600 and hit a fresh monthly low near 1.0560, with no signs of a correction. GBP/USD consolidates below 1.2200, looking for a new support level. USD/CHF surged above 0.9150, reaching its highest level since April.
USD/JPY rose above 149.00 as the divergence between the Federal Reserve and the Bank of Japan continues, with investors appearing to have no fears of intervention from Japanese authorities.
USD/CAD rose to weekly highs above 1.3500 but remained below the 20-day Simple Moving Average. Gold accelerated its downside momentum, hitting levels below $1,900 for the first time in a month, while silver experienced a significant drop below $23.00.
Also Read:
Australia’s inflation for August expected to rebound
Risk aversion, strong dollar drag GBP/USD lower
USD/CAD surges on stronger US dollar
Gold pushed lower below $1900, on higher rate bets, soaring T-yields
US stocks retreat on soaring Treasury yields, robust US dollar
