• After a shaky Monday, the USD recovered, and Tuesday is unlikely to see much movement.
• Amid renewed market sentiment, US Dollar (DXY) gains and remains near the 103.00 mark.
• The market is pricing in a 100 bps rate cut by year-end.

On Tuesday, the US Dollar (USD), measured by the DXY Index, is capitalizing on recent recovery gains near the 103.00 mark subsequent to an improvement in market sentiment. In addition, caution due to absent news about the Middle Eastern conflict between Iran and Israel is also backing the Dollar's current position. However, the Greenback's trajectory throughout the day could potentially be limited by the high dovish bets on the Federal Reserve (Fed).

Markets are seeing that the US economic outlook is weak due to July’s soft data and seem to be fearing a recession, while officials are asking the public not to overreact to one data point.