Markets Pile On Dollar as Equities Crest At New Alltime High

The greenback slipped to a new cycle low Tuesday, with the USD index bottoming out at 92.127, again the lowest since mid-2018. The move coincided with another surge higher in equity markets, as the S&P500 cash index hit a new intraday record high.

The declining dollar flattered most majors in G10, most notably EUR/USD, which crested at a new multi-year high of 1.1966. Similarly, AUD, GBP, CAD, NOK and SEK all hit new cycle highs against the USD. GBP was the strongest among the majors on the eve of the next round of Brexit negotiations, which kick off on Wednesday in Brussels.

The upside in equities extended to precious metals, resulting in spot gold climbing back above $2,000, despite a short selling spell that followed the equity open.

Japanese trade balance, UK and Canadian inflation data are the calendar highlights Wednesday. The Fed minutes are also due alongside a speech from Fed's Barkin. Lastly, the Bank of Indonesia hold their latest rate decision, with analysts seeing rates unchanged at 4.00%.