USD Index falls below 99.00 amid geopolitical optimism, boosting risk assets ahead of US consumer confidence data.
The US Dollar Index (DXY) retreated to a two-week low, dropping below the 99.00 support level as risk appetite improved on optimism surrounding a potential US-Iran deal. The shift in sentiment weighed on the Greenback, lifting major currencies and risk-linked assets globally.
EUR/USD climbed to multi-day highs near 1.1650, while GBP/USD broke past 1.3500, reversing recent declines. AUD/USD also rose sharply, nearing 0.7180. USD/JPY remained range-bound near 159.00, consolidating after two days of losses.
Key US data releases today include the Conference Board’s Consumer Confidence gauge, the Chicago Fed National Activity Index, and housing price indices. No major economic reports are expected from the Eurozone or Japan.