The United States Dollar is continuing its decent towards multi-year lows against most major and many minor currencies as investors posited that the U.S. Federal Reserve’s recently revealed policy framework will lead to the nation’s rates would continue to stay lower than the rates of other countries.
Whilst the U.S. financial calendar is full of announcements that would typically impact trader sentiment, such as releases of manufacturing and employment data, it is unlikely that positive results will not reverse the bearish sentiment that is seeing forex traders push the USD down.
Considering the USD is not only weak against major currencies, but also emerging currencies, it is highly likely that the dollar will remain on this downtrend. Continual low rates combined with an excess supply of dollars are the main factors of traders remaining bearish for the foreseeable future.
-The USD fell against the Euro to $1.19, the lowest since May 2018.
-The GBP rose to $1.13, the highest since December last year.
-The USD is buying 0.90 Swiss France, hovering just above the lowest rate in five years.
-The dollar fell back less dramatically to 105.75 Yen.
-The Australian dollar rose to $0.74, very close to its highest since August 2018.
Against the six major currencies, the USD index fell to a two-year low to 91.77. The dollar fell against emerging Asian currencies.