Risk appetite improved in the markets, and currencies and assets of safe havens were subjected to selling pressure since the beginning of the week yesterday, Monday, while currencies and high-risk assets rose, as the Dow Jones Industrial Average rose more than 600 points when it closed the opening session of the week yesterday, Monday, causing damage to the US dollar, one of the most important safe-haven currencies in the world.

The markets lost more than 1% in the opening session and continued to decline today, Tuesday, the 24th of May (May), trading at 101.75 levels, a loss of about 0.25%, trading at its lowest level in a month.

With markets’ expectations of continued strong monetary tightening from the US Federal Reserve in upcoming meetings and fears of a global economic recession, it seems that risk appetite is receiving support from positive news from China to ease closures and resume large parts of Shanghai to work again, in addition to improving relations between Washington and Beijing after he announced US President Biden is considering reducing tariffs imposed on imports of Chinese goods.

A large part of the US dollar’s decline is also due to its selling of the general index of the US dollar after it tested the levels of 105, the highest peak of the index since December 2002. Therefore, we do not rule out that profit-taking operations for investors are what put pressure on the dollar since the beginning of the week.

The yield on US treasury bonds, in turn, is recording declines and putting pressure on the US dollar, as the US 10-year bond yield is losing 1.34% at 2.821. In terms of economic data, the markets are awaiting today the PMI data in the services and manufacturing sectors for the United States of America, after the data from the European economy came in mostly negative moments before.
The euro is rising for the second session in a row and is trading at 1.0733 levels, up about 40 points, at its highest level in a month, as the euro benefits from the statements of European Central Bank President Christine Lagarde, who announced that the central bank may get rid of negative interest rates in the third quarter to raise market expectations that it will raise Bank of interest rates earlier than previously expected.