USD Turns Direction After Disappointing Session!

 The US dollar rebounded higher at the start of the European session, amid mixed market sentiment ahead of the FOMC policy meeting.

Against a basket of major currencies, the dollar index traded higher at 92.80, not far from the 3 -and -a -half -month high it reached last week.

Asian stock markets traded in the red ocean today, impressed by China’s intervention against technology companies, especially those in the education sector.

Gloomy market sentiment affected the market broadly and pushed the US dollar safe-haven higher.

In contrast, the U.S. stock market, the S&P 500 index hit a record high on Monday, which was partly supported by Tesla’s better -than -expected earnings report on Monday.

The aggressive move is expected to take place in the New York session, where investors will be shown earnings reports from Alphabet, Apple and other leading companies.

The euro failed to maintain its strength following the greenback's rebound, causing it to fall back below 1.18000.

On the other hand, the Aussie and New Zealand dollars plunged lower pushed down by the US dollar, as well as being crushed by concerns over cases of coronavirus infection which continued to show an increase in Australia, particularly New South Wales.

The release of Australian inflation data for the second quarter will be the main focus of the market in tomorrow’s Asian session, which is expected to show an improvement from the previous reading.

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