Forex Today: Dollar benefits from risk aversion to start the big central bank week

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Forex Today: Dollar benefits from risk aversion to start the big central bank week
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Forex Today: Dollar benefits from risk aversion to start the big central bank week – by eren_fxstreet Currencies Majors Macroeconomics CentralBanks Commodities

The greenback started the new week on a firm footing with the US Dollar Index rising to the 110.00 area following Friday's retreat. The cautious market mood ahead of key central bank events helps the dollar outperform its rivals as a safe haven. US stock index futures are down between 0.4% and 0.8% while the 10-year benchmark US Treasury bond yield stays flat at around 3.45% heading into the European session.

Over the weekend, US President Joe Biden said that the US military would defend Taiwan in the event of an invasion by China. This comment seems to be causing geopolitical tensions to escalate at the beginning of the new week. "We are going to get control of inflation," Biden added.closed the last three days of the previous week in positive territory and managed to close above parity on Friday. The renewed dollar strength, however, dragged the pair back below that level early Monday.

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