US Dollar Retreats Amid Rising Risk Appetite

After touching a two-month high on Friday, the US dollar started the new week on the back foot, losing ground to other major currencies during early Tuesday trading. The greenback's losses can be attributed to the return of risk appetite in the markets, as US stocks rose on the back of optimism driven by expectations over this Wednesday's release of quarterly results from chip maker Nvidia. However, any downside for the dollar will be limited, as trading for the currency will likely remain within a relatively tight price range before Jerome Powell's speech at Jackson Hole on Friday.

Ricardo Evangelista – Senior Analyst, ActivTrades