US Dollar Index Near 96.60 Ahead of CPI

DXY is struggling to find direction in the 96.60 region, affected by the increase in the number of Corona cases and risk appetite.

The US dollar index, which measures the strength of the greenback versus a basket of currencies, was moving around 96.60 in the European morning. The index attempts to rebound after falling on Monday to 96.30 / 25 due to investors’ preference for risk-related assets

Covid-19 cases in US continue to increase, affecting the US dollar. Risk appetite trends are the main driver of the US dollar in the short term, along with the effects of trade tensions between the United States and China. Waves of risk aversion will push investors to the safe haven dollar. Ongoing stimulus packages from the Fed Could cap USD.

At the moment, the index is gaining 0.09% at 96.61.