The US Dollar is recovering from Monday’s meltdown and advances against the Japanese Yen.
Overnight, the RBA confirmed the Fed’s stance that a few data points are not enough to change the narrative.
The US Dollar index flirts with a break above 103.00 and could turn this week’s performance into positive territory.
The US Dollar (USD) recovers firmly on Tuesday, with the Greenback sprinting higher against the Japanese Yen (JPY). The turnaround was already triggered in the US trading session on Monday when President of the Federal Reserve Bank of Chicago, Austan Goolsbee, tried to soothe markets by saying that a few easing data points are not enough to open the debate on a recession. Royal Bank of Australia (RBA) president Michelle Bullock joined that thesis and even added that another rate hike is not off the table, while the RBA decided to keep its interest rate unchanged during its August meeting earlier on the day.
On the economic front, the main point for this week is already out of the way. The Institute for Supply Management (ISM) data was released on Monday and helped spark the turnaround in the Dollar’s appeal as the ISM Service Purchasing Managers Index (PMI) expanded at a faster pace than expected. The main theme on Tuesday is the US Trade Balance data for June. Nothing really market moving expected from this.
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