US Dollar Index (DXY) dives to fresh three-year lows below 98.00
The post US Dollar Index (DXY) dives to fresh three-year lows below 98.00 appeared on BitcoinEthereumNews.com. Risk aversion and hopes of Fed cuts are punishing the USD. Markets are growing sceptical about Trump’s ability to cut significant trade deals. Recent Fed-ECB divergence is putting additional pressure on the US Dollar. A mix of scepticism about US trade deals and hopes of further interest rate cuts by the Federal Reserve, following softer-than-expected consumer prices in May, has triggered a sharp US Dollar sell-off, sending the Dollar Index to fresh multi-year lows. The USD Index (DXY), which measures the value of the US Dollar against the world’s most traded currencies, is testing levels right below 98.00 for the first time since April 2022, after having depreciated about 1.30% so far today. Tariffs and Fed cut hopes are hurting the USD Investors’ scepticism about the durability of a modest US-China trade deal, and Trump’s threats to implement unilateral tariffs on most trading partners from June 9, have undermined investors’ confidence in the US negotiators’ ability to reach significant deals. The risk-averse market is hammering the US Dollar against safe-haven currencies like the JPY and the CHF. Apart from that, the USD is also plummeting against the Euro. The soft US inflation figures released on Wednesday have heightened expectations that the Fed will cut rates by 25 basis points in September. This contrasts with the recently adopted hawkish stance of the European Central Bank and highlights a monetary divergence that has boosted the EUR/USD to fresh multi-year highs near 1.1600. ECB President, Christine Lagarde, suggested after last week’s meeting that the bank might be close to the end of the easing cycle in a message that has been repeated by a number of European policymakers this week. In the absence of relevant Eurozone releases, these comments are providing significant support to the Euro. Central banks FAQs Central Banks have a…
The post US Dollar Index (DXY) dives to fresh three-year lows below 98.00 appeared on BitcoinEthereumNews.com.
Risk aversion and hopes of Fed cuts are punishing the USD. Markets are growing sceptical about Trump’s ability to cut significant trade deals. Recent Fed-ECB divergence is putting additional pressure on the US Dollar. A mix of scepticism about US trade deals and hopes of further interest rate cuts by the Federal Reserve, following softer-than-expected consumer prices in May, has triggered a sharp US Dollar sell-off, sending the Dollar Index to fresh multi-year lows. The USD Index (DXY), which measures the value of the US Dollar against the world’s most traded currencies, is testing levels right below 98.00 for the first time since April 2022, after having depreciated about 1.30% so far today. Tariffs and Fed cut hopes are hurting the USD Investors’ scepticism about the durability of a modest US-China trade deal, and Trump’s threats to implement unilateral tariffs on most trading partners from June 9, have undermined investors’ confidence in the US negotiators’ ability to reach significant deals. The risk-averse market is hammering the US Dollar against safe-haven currencies like the JPY and the CHF. Apart from that, the USD is also plummeting against the Euro. The soft US inflation figures released on Wednesday have heightened expectations that the Fed will cut rates by 25 basis points in September. This contrasts with the recently adopted hawkish stance of the European Central Bank and highlights a monetary divergence that has boosted the EUR/USD to fresh multi-year highs near 1.1600. ECB President, Christine Lagarde, suggested after last week’s meeting that the bank might be close to the end of the easing cycle in a message that has been repeated by a number of European policymakers this week. In the absence of relevant Eurozone releases, these comments are providing significant support to the Euro. Central banks FAQs Central Banks have a…
What's Your Reaction?
