US dollar is recovering from Monday’s crash and making gains versus the Japanese yen.

The US Dollar (USD) returns strongly on Tuesday, with the Greenback soaring versus the Japanese Yen (JPY). The reverse had already initiated in the US trading session on Monday. When President of the Federal Reserve Bank of Chicago, Austan Goolsbee, tried to comfort markets by stressing that a few easing data points are not enough to open the debate on a recession.

RBA reiterated the Fed’s view that a few data signals are insufficient to shift the narrative.

Michelle Bullock, president of the Royal Bank of Australia (RBA), agreed with. That premise and even stated that another rate hike is not out of the question. Despite the fact that the RBA voted to maintain its interest rate steady at its August meeting earlier that day.
On the economic front, this week’s primary subject has already been addressed. The Institute for Supply Management (ISM) data was issued on Monday, sparking a turnaround in the Dollar’s appeal as the ISM Service Purchasing Managers Index (PMI) rose faster than anticipated. The US Trade Balance figures for June will be the main focus on Tuesday. Nothing particularly market-moving is expected from this.

Daily Market movers: Return to regular programming The US Dollar index is flirting with a break over 103.00.

The markets are recovering from Monday’s route, and equities rise across the board. The US dollar is outperforming the Japanese yen by more than 1% during the European trading day.
US Vice President Kamala Harris has been formally nominated as the Democratic contender for the 2017 November presidential elections.
At 12:30 GMT, the US Goods and Trade Balance figures for June will be revealed.
The Goods and Services Trade Balance deficit is expected to narrow from $75.1 billion to $72.4 billion.
The goods trade balance deficit was $96.8 billion in May, but no prediction is provided for June.
At 14:00 GMT, the TechnoMetrica Institute of Policy and Politics (TIPP) will publish its monthly Economic Optimism Survey for August. The previous measurement was 44.2, and a climb to 45 is expected for August.
The US Treasury is heading to the markets to sell 52-week bills and distribute 3-year notes at significantly lower rates than previously.
Equity markets are surging, with the Japanese Nikkei and Topix closing Tuesday with 10% gains each. Europe is trading strongly in the positive. In the US futures market, the Nasdaq is leading the comeback, up about 2% on the day.
The CME Fedwatch Tool predicts a 73.5% possibility of a 50 basis point (bps) interest rate drop by the Fed in September. Another 25 basis point cut is projected in November by 54.5%, with a 29.7% likelihood of a 50 basis point cut and 15.8% of no cut at all penciled in for that meeting.
The US 10-year benchmark rate currently trades at It hit a fresh 52-week low of 3.86% before rising as investors fled bonds and returned to equities.