The US dollar is trying to cut its losses for a second day, after a week in which the dollar index hit its lowest level in three years as investors took profits from recent dollar declines in light of rising bond yields and market expectations for tomorrow's rate decision.
Despite the dollar's attempt to rise, it recorded the biggest monthly decline since July 2017. The dollar index hit its lowest level since December 2014 at 88.24, as strong global economic growth and global inflation slowed, before rising to 89 levels at the start of trading today. The rise in global bond yields and the 10-year US bond yield, which hit its highest level since April 2014 at 2.7%, helped investors abandon some short positions.
The Euro rose to the 1.24 level after reaching its lowest level since Wednesday at 1.2334 at the beginning of the trading day and is currently trading at an important resistance range of 1.2424 / 87. Stabilizing below that range may push it back to the levels of 1.2077.
Oil prices fell for the second day in a row as rising US output and the recovery of the US dollar pushed Brent crude to levels of 68.48 dollars a barrel, the lowest level since January 22, while US crude fell to levels of 64.64 dollars a barrel.
