The U.S. dollar is losing ground for another consecutive day. At the start of the European session, the dollar index is down −0.30%. The market expects a 25bp Fed rate cut and a dovish press conference from Jerome Powell.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appDonald Trump’s policy is clearly weighing on the U.S. currency. Trump has publicly expressed a desire to devalue the dollar. Considering that since the beginning of the year there has been only one positive month, it can be said that the president is carrying out his strategy. The dollar’s weakness is driven by several factors, including the trade war, political uncertainty, and the upcoming rate cuts.
For several months now, the dollar has been trading at the lower end of its channel, near two standard deviations. However, in the case of a prolonged downtrend, such levels can be sustained for an extended period.
Since mid-June, the dollar has remained within the current consolidation channel. The upper boundary has been tested multiple times without a lasting breakout. The dollar is now approaching the lower boundary, and a retest of support above 96.1000 points cannot be ruled out.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
