On Tuesday, the 17th of September 2019, at a range-bound trading session, the US Dollar index (DXY), measured against a basket of six major currencies shed 0.35 per cent to wrap up the day at 98.26, as currency traders were bracing for an anticipated interest rate cut by tomorrow (September 18th) evening, while euro gained after an influential ZEW survey had displayed a shimmering ray of hope in German investor confidence.
In point of fact, a downward spiral for US Dollar index was expected ahead of a Fed rate cut amid growing geopolitical tension in the Middle East followed by attacks on two of Saudi Aramco’s oil facilities, however, a sharp downturn of American dollar gathered pace on Tuesday’s (September 17th) market by a stronger euro alongside a softening of crude oil price, which prompted a short rally of oil-price-oriented loonies likes of Canadian Dollar, Australian Dollar and Norwegian Krona.
Meanwhile, the bloc’s single currency wrapped up the day 0.59 per cent higher against its American counterpart to $1.1065 followed by an unprecedented improvement of German investor confidence as beforementioned, while citing the euro zone currency’s rally an over-exaggerative response ahead of an anticipated Fed rate cut, a global interest rates and currencies strategist at Macquarie Group, Thierry Wizman said on Tuesday’s (September 17th) market round off, “It’s maybe why the euro is doing a little better here. You also had some good data in Europe as well that has sparked a bit of this euro rally today too. ”