US Dollar’s Stealth Rally Ignites Market Frenzy—What Hidden Economic Shock Is Just Around the Corner?
The US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, is extending Monday’s strong gains during the European trading hours. As of now, the index is consolidating around the 99.00 psychological mark, its highest level since June 23, reflecting continued bullish momentum driven by easing trade tensions and solid US economic fundamentals.
The US Dollar Index hit its lowest level in over three years on July 1, dropping to 96.38. Since then, it has been steadily recovering and is now on track for its first monthly gain since February, rising over 2.0% so far this month. The rebound has been fueled by easing trade tensions ahead of the August 1 deadline, with new agreements reached with major partners like the EU and Japan, as well as smaller economies including Indonesia, the Philippines, and Vietnam. Strong US economic data has also contributed significantly, providing additional strength to the US Dollar.
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