ZFX: Risk sentiment improved amid mixed news
The US data of business activities and home sales are still supportive to the greenback on Monday. The Dollar Index is trading at 93 level in the European session opening despite the return of the risk appetite.
Investors are questioning whether additional monetary easing is needed or not for maintaining the economic recovery. The answer may be revealed this week after Powell’s speech at Jackson Hole on Thursday.
President Trump once again raised the possibility of decoupling the US economy from China, further escalating the tension between China and the US. However, so far risk on mode is still dominated on Monday in Asian markets.
Investors are monitoring continually about the development of the coronavirus pandemic. The total confirmed cases worldwide of the new coronavirus exceeded 23.4 million, with more than 810000 deaths. The US government authorized the use of blood plasma from recovered COVID-19 patients as a treatment option, and at the same time, it is reported that Trump’s administration may consider fast tracking an experimental coronavirus vaccine developed in the U.K.