The US Dollar has experienced a significant decline, with the DXY index reaching a seven-month low. This sharp depreciation is primarily attributed to mounting expectations of aggressive Federal Reserve interest rate cuts. Despite a resilient US economy, market participants are leaning heavily towards a dovish policy stance.
The upcoming Jackson Hole Symposium will be a crucial event, as market participants closely watch for clues about the Fed’s future monetary policy direction from Chair Jerome Powell’s speech.
Technical Outlook
The DXY index exhibits a strong bearish trend, with technical indicators confirming the downward momentum. The index has broken below key support levels, suggesting the potential for further declines.
