Five reasons behind dollar weakness

There is no reprieve for the greenback on Tuesday as all the major factors point to further waning of its attrac-tiveness. The US currency struggles to regain strength after the recent change in the Fed’s tone on tightening prospects. Recent investor optimism over the US-China trade negotiations added to the bearishness as well.

Today, the PBOC has strengthened the yuan by the most since June 2017, which put the USD under further pressure. Also, we see a strong recovery in the European currencies as euro rises on hopes that Italy’s govern-ment will make enough budget concessions to satisfy the European Commission. Meanwhile, the cable jumped as the EU court aide hinted at leaving open option to revoke Article 50 unilaterally. Strong UK PMI construction and euro zone PPI data also help to lift sentiment surrounding the European currencies and add to the selling pressure on the buck.

A more notable bearish driver for the dollar is further fall in Treasury yields. The 10-year yields broke below the 3.00% figure, down to three-month lows. Even more alarming is the fact that the spread between the 3-year note and the 5-year note have inverted for the first time since 2007, which is a sign of a recession in the US. This fac-tor should be closely followed down the road as further bearish signals from this front could derail Fed’s tight-ening plan and make the greenback break the ongoing bullish trend .
Excellent post with well referenced information. Many thanks for sharing. :)
EN English (UK)
EN English
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Send feedback Ideas Published Followers Following Private Messages Chat Sign Out