Jump to content
AskTraders Trading Community
  • 0

Why is the dollar index sliding over the past few days?


Leon Mathias

Question

1 answer to this question

Recommended Posts

  • 0

The dollar index has witnessed moderate selling in the past few trading sessions, with the pace gathering momentum in the aftermath of central bank policymakers hinting at the possibility of an interest rate cut amid risks to global growth following the escalation in trade tensions between the United States and China.

Earlier this week, the President of the Federal Reserve Bank of St. Louis, James Bullard hinted that the Fed could cut interest rates sooner than expected and the recent inversion in the Treasury yield curve is an indication that interest rates in the country are “inappropriately high.” Following up on the Bullard's statement on Tuesday, Federal Reserve Chairman Jerome Powell dropped his standard “patient” reference while approaching any rate decision while instead saying that policymakers will respond to the situation appropriately.

The US dollar index (DXY) has dropped more than a per cent in the last three trading sessions and the declines extended to three-week lows of 96.963 at 7.30 AM GMT on Wednesday. Analysts expect to see further weakness in the dollar, especially if the Fed does ease since it would be a clear indication of a slowdown in global economic growth.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. To reply to this question, sign in or create a new account.

Guest
Reply to this question

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...