- DXY trades within an inconclusive fashion below the 94.00 level.
- US yields trade on the defensive on turnaround Tuesday.
- IBD/TIPP Index, API report next on tap in the US calendar.
The greenback, in terms of the US Dollar Index (DXY), reverses the negative start of the month and hovers around the 93.90 region on Tuesday.
US Dollar Index cautious ahead of FOMC event
The index navigates slightly within the positive territory on Tuesday amidst declining US yields and generalized lack of direction in the risk appetite trends.
Indeed, US cash markets see yields in the front end and the belly of the curve extending the recent decline to the 0.48% region and the 1.55% area, respectively; while the long end adds to the recent gains and approaches 1.97%.
The dollar, in the meantime, is expected to trade in a context of rising cautiousness ahead of the key FOMC event later in the week. Indeed, consensus sees the…