Dollar dives to 2-year low ahead of key US data

The US dollar fell on Monday, to deepen its losses for the seventh straight day and hit a 2-year low, as the US 10-year treasury bond yield fell, and growing odds for the US Federal Reserve to boost its stimulus policy, which comes ahead of the US durable goods orders reading.

The dollar index fell 0.7% to the lowest since June 2018 at 93.70 points, after opening at 94.35, and hit an intraday high of 94.42.

The index lost 0.45% on Friday, posting its sixth daily loss, on strong sell-off.

The greenback has lost 1.7% during the past week, and posted its fifth straight weekly loss, within the largest weekly losing streak since March, due to weak demand and strong investors sentiment.

Investors sentiment remains strong in most markets, especially after the EU leaders agreed on an economic recovery fund, and positive news about coronavirus candidate vaccines, in addition to upbeat economic data in most parts of the world.

This drop in the US dollar comes due to the US 10-year treasury bond yield falling, and growing odds for the US Federal Reserve to boost its stimulus policy to ease the gloomy outlook for the US inflation.

Investors are anticipating key economic data releases today on the US durable goods orders during June.

The US durable goods orders reading is expected to rise by 7.0% in June vs. 15.7% in May, and the core reading is expected to rise by 3.5% vs. 3.7%.