The US Dollar Index gains of less than 0.1% during early Tuesday are modest but still remarkable when you consider the greenback’s losing streak of more than 2% over the previous seven sessions. The Dollar’s slight recovery coincides with an improvement in market sentiment, which turned more positive following the pledge by central banks around the globe to provide monetary stimulus to mitigate the fallout from the coronavirus crisis. Optimism is moderate though and we mustn’t misinterpret this rebound as a recovery. The coronavirus is still casting its shadow over the global economy’s growth prospects and after more than 10 years of monetary stimulus, central banks’ capacity to intervene is, generally speaking, limited.
