- The bullish bid for the US dollar has been capped just below 0.9100.
- The dollar loses momentum as risk aversion declines.
- Traders are becoming increasingly cautious ahead of the US elections.
The U.S. dollar it tried to break above the top of the last five days’ trading range at 0.9090 on Tuesday to find sellers at 0.9095 before retreating to the 0.9060 zone.
The US dollar loses steam as risk aversion decreases
The dollar lost momentum on Tuesday, with the US dollar index slightly negative on the day following a good performance on Monday. With risk aversion waning somewhat, the dollar’s bullish attempt has not had a follow-up above 0.9090 and the pair has returned to previous levels, although it remains modestly positive on the day.
Investors appear to have turned a profit on Tuesday, pushing USD longs back on uncertainty over the upcoming US election, prompting a cautious approach to the market.
Equity markets in the US are mixed after a modestly negative open, following sharp declines on Monday. The Nasdaq Composite Index is trading 0.6% above opening levels, and the S&P 500 and Dow Jones are down 0.3% and 0.8% respectively.
On the macro front, the numbers for durable goods orders and US house prices have read better than expected, helping to strengthen market sentiment during the North American trading session. .
Credits: Forex Street
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