- DXY Still Seen in the Downtrend for the Month
DXY Still Seen in the Downtrend for the Month
The US Dollar has been having a really rough month with the greenback moving downward consistently. The slow down in the US economy has caused the weakness in the US dollar to flare up. This gave other currencies such as the NZD and the EUR make some gains. More than that, Gold also made a good gain due to the USD weakness.
Not-So-Good USD Interest Rates
First off, the interest rates’ long term movement is affected by the overall US treasury yield’s weakness. This will most likely result in the FED implementing a yield control. Up until now, it is expected for the FED to still be on the dovish side.
Currently, the DXY is in a critical support level at 95.82. If it breaks out its support and continues its bear run, then we can expect to find some long opportunities on other sensitive currencies such as the AUD and the NZD. We may even see Gold making its way higher if the DXY falls.
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