The dollar continued to slide, perhaps on rising expectations that the gap of monetary policy divergence between the Fed and other major central banks will continue to narrow faster than previously anticipated. In the UK, pound traders are likely to have their gaze locked on the UK CPI data.
With not much on the agenda to drive the FX market yesterday, the US dollar continued to drift lower, with the Dollar index (DXY) recording its 4th negative day in a row. Since the 1st of January, the index is down around 1.8%. The greenback underperformed all but one of its G10 counterparts on Tuesday, with the exception being the yen, while the main gainers were EUR, GBP and CHF in that order.
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