US DOLLAR EXTENDS CORRECTION WITH CHINA REOPENING

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  • The US Dollar trades mixed against G10 currencies during the European session on Tuesday. 
  • China markets are back again after the Golden Week closure, triggering a surge in volatility. 
  • The US Dollar Index trades still above 102.00, though entering a second downbeat trading day. 

The US Dollar (USD) eases for a second day in a row with investors welcoming China back to the markets. It is not a warm welcome, with the Chinese Hang Seng 300 Index down over 9% at its closing bell. A surge in risk-off is taking place, with European stocks on the backfoot as well. 

The economic calendar is light and should not create big waves on Tuesday, with the Goods Trade Balance and the Economic Optimism Index not expected to be market movers. Comments from Federal Reserve Bank of Atlanta President Raphael Bostic and Federal Reserve Vice Chair Phillip Jefferson, however, could be. 


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