The dollar was rising against all G-10 currencies Tuesday morning, extending moves seen on Monday, even as Treasury yields broadly fell on flight-to-safety trades by investors. The ICE U.S. Dollar Index was up almost 0.7%. Weaker-than-expected data out of China, along with Moody’s downgrade of several small- and medium-sized U.S. banks, was “serving to squash risk appetites,” according to Marc Chandler, chief market strategist at Bannockburn Global Forex. Meanwhile, “people are questioning the demand side of things” from China and Japan, respectively the world’s second- and third-largest economies after the U.S. “The U.S. economy is showing greater resiliency” than either Europe or Asia, Chandler said via phone. “People like me are looking for the dollar to stay firm into the CPI number on Thursday.”
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