US Dollar index Testing 96.60

The US dollar index, which tracks the strength of the greenback versus a basket of currencies, managed to recover from previous lows in the range of 96.40 / 35 recorded earlier.

The index started the week on the negative side, although it managed to regain some momentum and returned to bounce after the European opening bell on Monday.

Risk-on is a significant driver of the US dollar on the short side, one of the movers of the dollar is trade tensions between the United States and China as well. However, continued and additional stimulus packages from the Fed can limit the upward trend of the dollar.

Investors’ focus remains on Covid-19 developments and its impact on re-opening.

The US dollar index was 0.04% at 96.62 and the next hurdle at 96.24 (low on July 9).