Forex
Dollar Index Rallies as Oil Prices Surge, Dovish Fed Odds Soar
The US Dollar Index (DXY) has extended its recovery from Monday's decline, trading slightly higher to near 99.90 on Tuesday.
This comes as rising oil prices due to prolonged fears of energy supply disruption continue to support the Greenback.
According to strategists at ING, the latest US Nonfarm Payrolls (NFP) data for July revealed a reduction in the overall labor force and downward revisions in labor additions figures from previous months, signaling 'clearly dovish and dollar-negative' signals.
The odds of the Federal Reserve leaving interest rates unchanged in the September meeting have increased to 48.3%, up from 30.4% seen a month ago, according to the CME FedWatch tool.