US Dollar Index Dips Near 98.00 on Risk-On Sentiment.
The US Dollar Index (DXY) dips near 98.00 amid improved risk sentiment and declining US Treasury yields.
The US Dollar is trading with a mildly bearish bias on Friday, pressured by improved risk appetite following strong US corporate earnings. This upbeat sentiment has carried into the European session, lifting equities while dragging down US Treasury yields and the greenback.
The US Dollar Index (DXY), which tracks the USD against a basket of major currencies, is testing levels below 98.00, retreating from a three-week high of 98.50 reached earlier in the day.
Despite the intraday dip, the overall trend remains positive, with the DXY still up 0.55% from the weekly open and on course for a second consecutive weekly gain.
Robust corporate earnings lifted investor risk appetite.
U.S. corporate earnings lifted risk appetite on Thursday, with Netflix beating expectations and TSMC reporting its strongest quarter on record. Positive results from PepsiCo and United Airlines also supported market sentiment. Meanwhile, Fed Governor Waller’s renewed call for rate cuts added pressure on the U.S. Dollar.
Earlier, the Dollar Index (DXY) had touched a three-week high after upbeat U.S. retail sales and jobless claims data confirmed consumer and labor market strength, reinforcing the Fed’s cautious stance on rate policy.
