The Dogecoin mining appUS Dollar Index (DXY) extends its decline for the second consecutive session amid improving market sentiment.
Positive economic signals from Europe and political stability in Japan contribute to pressure on the greenback.
Ongoing trade tensions and tariff concerns provide some support to the USD near recent highs.
The US Dollar Index (DXY) continues to retreat during Monday's European trading hours, building on Friday's reversal. With no major economic data releases scheduled, a modest improvement in risk appetite combined with lower US Treasury yields is weighing on the dollar's performance.
Across the Atlantic, the latest ECB Survey on Access to Finance of Enterprises indicated that European businesses remain cautiously optimistic about economic prospects, though concerns persist regarding potential US tariff measures. The Euro gained slight momentum following the report's publication, adding to the downward pressure on the US currency.
Earlier in the Asian session, the Japanese Yen found support as election results suggested political continuity, with Prime Minister Ishiba's coalition maintaining control despite a narrow loss in the upper house. Market participants viewed this outcome as reducing the likelihood of significant fiscal policy changes that could have impacted currency valuations.
However, the overall risk-on mood remains tempered by growing apprehension about impending trade developments. With the August 1 deadline approaching and little visible progress in negotiations, market participants are closely monitoring potential escalations in transatlantic trade tensions. Recent statements have indicated possible increases in reciprocal tariffs between the US and EU, regardless of any potential agreement.
