DXY: US Dollar Pares Back Gains as Forex Market Reshuffles After US-China Deal
Less than 1 min read
Key points:
- US dollar retreats to under 101.00
- Rival currencies seen gaining pips
- Retail sales data to move markets
Greenback gave back some of its early-week advance and slumped under 101.00 against a basket of rival currencies.
📉 Dollar Zig-Zags in Forex Trading
- The US dollar index
DXY slipped under the 101.00 handle, extending its slump from yesterday when it lost about 0.8%. But before that, the mighty currency popped as much as 1.3% to tackle 102.00 as dollar bulls celebrated the US-China deal, which axed tariffs on both sides by 115%. - A cooldown in the forex market saw the dollar pare back a chunk of its early-week gains as currency-trading bros rotated back into the euro, the Japanese yen and the British pound.
👀 A Look Across the Board
- The
EURUSD pair, for one, shot up nearly 1% on Tuesday and opened Wednesday’s session moderately higher. The euro was trading near $1.12 earlier today after rebounding from the 50-day moving average. - The
USDJPY was showing a two-day decline today with its exchange rate slipping toward the ¥147.00 handle from a weekly high of ¥148.64. And the 
GBPUSD was chasing $1.33 after hitting a weekly low of $1.3139.
🔔 What’s Coming?
- What’s next for the US dollar and the forex market broadly? Markets are still digesting the tariff truce, but there’s also Tuesday’s inflation data sending some mixed signals to traders.
- Looking ahead, the US retail sales report for April will be released Thursday. The figure will highlight how consumer spending fared last month and show whether folks were more contained in their shopping behavior.