US Dollar Index (DXY) retreats below 98.00 on risk appetite, lower US yields 

• The Dollar pulls back from highs as upbeat corporate earnings boost investors' appetite for risk
• The broader US Dollar trend remains positive, with the DXY on track to close its second consecutive week in green.
• The Dollar hit fresh three-week highs on Thursday, following strong US Retail Sales and lower Jobless claims data.

The US Dollar is trading with a moderate negative tone on Friday. The risk-on mood triggered by the upbeat US corporate earnings seen on Thursday has extended to Friday’s European session, boosting demand for equities and pulling US yields and the USD lower.

The US Dollar Index (DXY), which measures the value of the USD against the most-traded currencies, is currently testing levels below 98.00 at the time of writing, down from the three-week high of 98.50 reached on Friday.

The broader trend, however, remains positive, with the DXY moving 0.55% above the weekly opening and on track to close its second consecutive weekly gain.

Strong corporate earnings boosted risk appetite

US corporate earnings boosted risk appetite on Thursday. Netflix results beat expectations, TSMC, the major AI chipmaker, showed its best quarterly performance on record, and reports from other firms like PepsiCo and United Airlines contributed to lifting market sentiment.

Beyond that, Fed Governor Christopher Waller reiterated his call for lower interest rates during the late US trading session and increased bearish pressure on the US Dollar.

Somewhat earlier, the DXY hit a fresh three-week high after US Retail Sales figures for June and Weekly Jobless claims data confirmed that consumption and employment remain resilient, providing a cover to Fed Powell to keep interest rates unchanged for some time.