What’s driving the dollar higher?

The Fed took a pause in hiking rates but the greenback rallies. After eight sessions of strength, the ascent stalled, however demand reemerged quickly and took the currency to fresh highs. So what’s behind the USD strength after all?

Essentially, it’s more weakness in other currencies rather than dollar appeal. It is just ‘best of a bad bunch’ as, for example, euro suffers from increasing risks to the European economy. The reports point to a slowdown in Germany, the region’s growth engine. And the overall health of the euro area economy is worsening. A worri-some political background in Italy , France and Spain add to the gloomy sentiment in the region.

Meanwhile, the threat of another US government shutdown is abating as Trump shows readiness to sign the border security deal despite he is "not happy" with the deal reached by congressional negotiators this week. The trade spat with China is also on the way to being resolved. And the US fundamentals look better than in other economies.

At the same time, the greenback will hardly be able to significantly extend the current rally without a less dovish rhetoric by the Federal Reserve . As such, the upside potential from here looks limited, though the currency will likely retain its bullish tone in the short term.
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 Pricing House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out