The US Dollar Index, used by investors to gauge the relative strength of the greenback against major peers, was lower but remained close to a 2-week peak as an improvement in risk appetite helped to push yields on US Treasuries higher. Analysts say that three key factors have helped the sentiment shift; specifically, optimism that a no-deal Brexit will be avoided, a dovish outlook from the Federal Reserve, and easing in the trade tensions between the US and China. The only possible “fly in the ointment” for the Dollar, at least according to one currency strategist, is the looming release of earnings reports.
As reported at 10:55 am (JST) in Tokyo, the USD/JPY was trading at 109.6790 Yen, down 0.0847%. The AUD/USD pair was trading at $0.7175, a gain of 0.07%, while the NZD/USD was trading higher at $0.6733, down 0.07%. The US Dollar Index was trading at 96.2760 .DXY, down 0.06% and off the peak of 96.394 .DXY.
Market Movers Ahead for Euro, Pound and Kiwi
In economic news, later today markets will watch for the release of producer price inflation data from Germany which is expected to be lower. Tomorrow, markets will focus on employment data from the UK; currently, analysts are predicting that average earnings for the three month period through January will be flat, both with and without bonuses. Later on Tuesday, Statistics New Zealand will release consumer inflation data for the 4th quarter of 2018 which is expected to fall to 0.0% from 0.9%.