US DOLLAR INDEX EYES BELOW 102.00 AS WEAK US PMI PROMPTS PAUSE IN FED’S TIGHTENING SPELL

The US Dollar Index (DXY) is displaying a back-and-forth action above the immediate support of 102.00 in the Asian session. The asset is prone to print a fresh two-month low below 102.00 as the risk appetite theme is underpinned by investors after inspiring by the anticipation of a pause in the policy-tightening process by the Federal Reserve (Fed).

S&P500 futures are showing nominal losses in the early Asian session. United States equities settled Monday’s session on a positive note as the Fed would announce an early pause to the rate-hiking spell. This led to a jump in the demand for US government bonds. The 10-year US Treasury yields have slipped to near 3.41%. The commentary from US Treasury Secretary Janet Yellen that the surprise announcement of oil production cuts by OPEC will add uncertainty to the global growth outlook has failed to spoil the upbeat market mood.