US Dollar Index (DXY) climbs to levels nearing 97.00 amid higher demand for safety
The US Dollar is one of the best performers among major currencies on Monday. Investors’ risk-averse sentiment amid growing concerns about global trade, as the US is likely to announce tariffs on imports today,
The US Dollar Index (DXY), which measures the value of the Greenback against a basket of the most traded currencies, has climbed to the upper range of the 96.00s, putting some distance from last week’s long-term lows, right below 96.00 and approaching a key resistance level, at 97.00.
US tariffs have boosted risk aversion
Trump said on the Weekend that he will send letters on Monday to countries that did not cut deals with the US that they will be facing the tariffs announced on April 2. The deadline, however, is unclear as some US administration spokespersons have mentioned August 1, in another probable moratorium from the initial July 9.
The habitual uncertainty surrounding most of the US Government’s initiatives, together with renewed concerns about tariffs’ negative impact on global growth, is hurting investors’ appetite for risk today, while the US Dollar picks up alongside US Treasury yields.
The US calendar is light this week, but the strong US Nonfarm Payrolls numbers seen last week dissipated concerns about the US economy and crushed hopes of Fed cuts in July. This is likely to provide additional impetus to the US Dollar, at least until the release of the minutes of the last Fed meeting, due next Wednesday, which might reflect some divergence within the committee.
Source: FXstreet
