US Dollar traded soft while investors await Fed decision

Share:

• The US Dollar, measured by the DXY index, slides towards 106.10.
• US Treasury yields are increasing and may limit the USD’s losses.
• A positive market environment and Middle East fears easing weakened the USD.
• Wall St indexes are sharply rising.
• Markets have practically priced in a pause in the Fed’s meeting on Wednesday.

The US Dollar (USD) experienced a decline in Monday’s session to a low below 106.10 when gauged by the DXY Index, which measures the value of the USD against a basket of global currencies. The weakening of the USD  was driven by risk-on flows, making it struggle to gather demand. As the economic calendar had nothing major to offer on Monday, investors’ focus shifts to the highlights for the rest of the week, including the Federal Reserve (Fed) Interest Rate Decision on Wednesday and Nonfarm Payrolls data on Friday. Both events have the potential to further impact the USD price dynamics.