The US Dollar has declined, with the DXY index falling to its lowest level since January. This weakness is primarily attributed to market expectations of forthcoming Federal Reserve interest rate cuts. Despite recent robust economic data, investors remain focused on the potential for a more dovish monetary policy stance.
The upcoming Jackson Hole Symposium will be a crucial event, as market participants await clarity on the Fed’s policy trajectory from Chair Jerome Powell’s speech.
Technical Outlook
The DXY index exhibits a clear bearish bias, with technical indicators confirming the downward pressure. The index has broken below key support levels, suggesting the potential for further declines.
