President Trump's threats of higher US tariffs on China last Friday led to some decisive price action in FX and bond markets. USD/CNH traded sharply higher, but the DXY dollar index dropped even more as investors felt the fallout would be greater on the US than on China.
The Dow Jones Industrial Average (DJIA) tilted back into the bullish side on Wednesday, recovering recently lost ground and retesting the 46,800 level as major indexes look to reestablish their top-heavy stance.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its gains for the third successive day and trading around 98.90 during the Asian hours on Wednesday.