Home›Forex›Major Pairs›Dollar slips below 100 as Iran talks hopes lift risk s…

Dollar slips below 100 as Iran talks hopes lift risk sentiment

The US Dollar Index trades near 99.7 as markets weigh expectations for the ISM Manufacturing PMI and upcoming US employment data, with Fed rate hike odds in September already reduced.

Reported · Written up by our desk · Major Pairs

The US Dollar Index, a measure of the dollar against a basket of six major currencies, slipped to around 99.7 in Asian trading as risk sentiment improved, according to FXStreet.

The move followed comments from US President Donald Trump that an attack on Iran had been called off and that talks between Washington and Tehran would begin on Monday, with hopes around reopening the Strait of Hormuz seen as a potential near-term drag on safe-haven demand for the dollar.

Traders are also positioning for key data, with FXStreet pointing to Monday’s release of the US ISM Manufacturing PMI and highlighting that the employment report on Friday could influence the direction of the DXY.

FXStreet added that the Fed held interest rates unchanged at its July meeting and that markets have priced in a 64.7% chance of a September rate hike, down from about 77% prior to the July decision, citing Commerzbank analysis that the dollar could face renewed pressure once geopolitical tensions ease.

Latest closeDollar index 99.80 ▼0.2%

More like this

Sources