The market is hungry for good news

The US dollar continues to recoup some of yesterday’s losses. It’s coming with strength in stocks and some light bids in bonds.

The euro rose to as high as 1.1573 yesterday but it’s sagged to 1.1429 today, which is about 40 pips from Friday’s close.

In my opinion, this reveral has come on some flimsy headlines from Bessent and others. That said, the selloff in the dollar yesterday didn’t have much of a catalyst either as the Powell and Japan-trade headlines weren’t bad (provided Powell isn’t actually fired).

The good news today — I think — is that Trump has been quiet on trade. That likely has some in the market believing that he is hungry for a deal and anything that could turn around markets. Imagine the President was quiet on trade every day.

This article was written by Adam Button at www.forexlive.com.