Dollar Regains Balance as Yields Rise Amid Tensions

The US Dollar (USD) has regained balance on Tuesday after a negative start to the week. This recovery is attributed to a generalised increase in US Treasury yields and ongoing geopolitical tensions.

The US Dollar Index (DXY) briefly surpassed the 99.60 level, recouping a significant portion of its losses from Monday. The usual MBA Mortgage Applications are due, followed by more relevant data releases including ADP Employment Change, Factory Orders, and the weekly EIA report on US crude oil inventories.

The EUR/USD has traded on the defensive, slipping below 1.1600 despite flash inflation data in the Euroland rekindling speculation of an ECB rate hike in September.