Despite making some early losses, US Dollar made gains against all major currencies leading to US Dollar Index (DXY) closing with fresh highs.

Market optimism, reduced risk sentiments, and softer US data all kept the US Dollar bulls on the move. EUR/USD closed the day at 1.1800 while GBP/USD reached back to the 1.3800 level. The greenback also bettered its position against major ASEAN currencies like Thai Baht, Singapore Dollar, etc.

The US Dollar Index slipped below the short-term key trend line support earlier in the day, but recovered fully and is eyeing to go beyond the 93.00 mark to retain control. If the US Dollar bulls can maintain the gains made, then a close near 93.50 is not a daunting task.

Investors are eagerly awaiting US Federal Reserve’s monetary policy announcements on Wednesday. Also with many S&P 500 companies due for publishing their quarterly reports, investors are particularly interested in earnings of technological giants like Alphabet, Microsoft, and Apple. In light of welcome earnings from Tesla and Hasbro, they are expecting a favourable result from Q2 results.

Market optimism will gain momentum if corona figures continue to go down and if US Fed announces easy-money policies on Wednesday.



About Author

Mithun Girishan is the founder of MMM (Mithun’s Money Market), a consulting firm providing quality training programs in capital markets. He is an investor, trader, coach and a continuous learner. In addition, Mithun provides consultation and mentorship to many retail investors and company directors across the globe for investments, trading and hedging their wealth in stocks and futures. His passion lies in exploring new avenues in financial markets as well as learning theoretical and practical economics and its application in daily lives. This has exposed him to a wide range of markets spanning from equity, commodity, forex, futures to options.

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