Forex Analysis

US dollar looks steady above the 93 mark against the basket of major currencies as improving economic data helped the greenback to reverse some losses last week. The U.S. central bank’s two-day policy meeting is scheduled for September 15-16.

Euro soared back to 1.18 level as Bloomberg reported that European Central Bank is more confident in economic recovery. This is because European economic forecasts are steady since June. Euro plunged sharply earl this week amid concerns over the potential ECB’s interference to half the common currency rally.

US Dollar soared robustly in the past six sessions in a row as coronavirus infections have been steadily declining over the past month. In addition, strong economic data from all over the world is adding to investor's sentiments. Some investors blame the selloff in British Pound and Euro value backed the US dollar value upside.

The USD index continues trading in a tight range around 93 levels amid bullish economic reports that are offsetting Federal Reserve’s low-interest-rate policy. The USD index recovered from twenty-seven months low last week as US jobs came in better than expectations. Strong services and manufacturing data is also adding to investor's sentiments.

USD index retreated from one week high that it had hit on Thursday as the market analysts are still bearish over the greenbacks future fundamentals. The concerns over US economic growth and Federal Reserve’s low-interest-rate policy is among the biggest bearish factors for the USD index.

US dollar soared for the second day in a row as investors have started showing confidence in the US economy as economic data have robustly improved in the past two months.

Although the US dollar index moved above the 92 level on Wednesday against the basket of six major currencies, the market analysts anticipate the greenback will remain in a bear mode for a long time due to Federal Reserve's easy policies.