Dollar index holds firmly above 98 mark; FOMC in focus

The US dollar index extended momentum following an over 1% surge in the previous session driven by US-EU trade agreement. The US and EU reached a framework trade agreement on Sunday that sets 15% tariffs on most European goods, taking effect on August 1. However, euro lost impetus following the trade deal that boosted the greenback. Moreover, further developments in the US-China trade talks are also eyed. Investors now turn focus to the outcome of a two-day FOMC policy meeting on Wednesday for further cues. The dollar index that measures the greenback against a basket of currencies is quoting at 98.44, a near two-week high. However, the basket currencies slumped yesterday in tune with dollar strength. EURUSD was quoting at around two week low of $1.1619 and GBPUSD dropped to a near two month low of $1.3354.

 

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