The dollar and the yen traded lower on Monday, while global equity indices were a sea of green. Following Powell’s dovish remarks on Friday, investors’ risk appetite was further boosted yesterday, after the US and Mexico reached a trade agreement, opening the door for Canada to join the talks.
Market Sentiment Boosted By US-Mexico Trade Accord
The dollar continued losing ground against all but two of the other G10 currencies on Monday. It gained only against the safe haven JPY, while it traded virtually unchanged versus NZD. The main gainers against the greenback were EUR, CHF and CAD.
The weakening of the dollar and the yen suggest that market sentiment remained supported. Indeed, global equity markets were a sea of green yesterday, with both the S&P 500 and Nasdaq surging to new record highs. The catalysts behind the recent boost in risk appetite may
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