DXY in a tight range

The US dollar has been sold off heavily on recent weeks due to the rising US COVID-19 cases and the co-ordinated move by Europe to pull together via the €750 billion recovery fund. This strength in the EUR further pressured the dollar index. However, a heavily sold USD has been supported by decent jobs data on Friday and Trump's signing some stimulus relief measures over the weekend.

Today sees the DXY trading in a tight range, but US 10 Y bond yields are higher. Investors are also cautious ahead of any fresh US-China tensions as talks are scheduled for August 15. Any breakdown in talks will benefit the DXY