US Dollar goes nowhere as dust settles over the US credit rating cut
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, is trading flat on Tuesday as markets continue to digest the recent downgrade of the rating in US debt, which led to a rollercoaster in US bond markets. Outside the US, geopolitical tensions are picking up again. France, the United Kingdom and Canada are considering sanctions on Israel if the country does not call off its ground offensive in Gaza and allows food supplies to enter the Strip. Israel’s Prime Minister Benjamin Netanyahu pushed back by saying that Israel has the right to defend itself.
Regarding the Russia-Ukraine war, EU leaders condemned the retreat of United States (US) President Donald Trump after his two-hour call with Russian President Vladimir Putin. Despite the bold claims that a deal would be brokered within days after becoming President and that a peace deal would not be possible without the US, President Trump said that the US would back out of any further talks by saying “it’s not our war to deal with”, Bloomberg reported. The unraveling adds to further losing credibility, hitting the value of the US Dollar.
In a relatively calm week in terms of economic data, traders brace for more comments from Federal Reserve (Fed) officials on Tuesday after Monday’s mostly hawkish tone seen among many of them.
Source: Fxstreet
