The US Dollar Index (DXY) is declining on Monday, erasing Friday’s gains, as recent polls suggest a potential victory for Vice President Kamala Harris in the upcoming US presidential election. This outcome could lead to a weaker US Dollar, as it is generally perceived as less supportive of the currency compared to a Donald Trump victory.
Additionally, the upcoming release of the Senior Loan Officer Opinion Survey (SLOOS) on Monday will provide insights into the current state of US lending conditions and may further impact the Dollar’s performance.
Key Factors Influencing the US Dollar:
- US Presidential Election: A potential Harris victory could weaken the Dollar.
- Senior Loan Officer Opinion Survey (SLOOS): This report will shed light on US lending conditions.
- Federal Reserve Interest Rate Decision: The Fed is expected to cut rates on Thursday, which could also pressure the Dollar.
Technical Analysis:
The US Dollar Index is facing significant volatility and uncertainty this week. Key levels to watch include:
- Resistance: 104.00, 104.63, 105.00, 105.53
- Support: 103.12, 103.18, 101.90, 101.00
Given the high level of uncertainty, traders are advised to exercise caution and consider implementing stop-loss orders to manage risk.
