No reprieve for the US dollar as the ICE dollar index falls to fresh lows of 90.571 on the day
All major currencies are extending gains against the dollar. EUR/USD is up to session highs of 1.2246 while USD/JPY, USD/CHF and USD/CAD are all near session lows on the day. Meanwhile, GBP/USD, AUD/USD and NZD/USD also touched session highs but came off a little – though they are all still trading nearby the highs.
Snapshot almost three hours ago:
It’s been one-way traffic in trading since the start of the day. The dollar index hit new lows at 90.571. You can argue it’s pretty much free fall for the dollar from here if you’re looking at the dollar index chart – with the next support level sitting near the 61.8 retracement level @ 88.423.
Since Trump took over as President, the “reflation trade” has seen the dollar index fall in the last 4 quarters. If the trend continues into this quarter, it would be the first time since 2007-08 (financial crisis) that we see the dollar index decline for five consecutive quarters.
The dollar is still looking for a hero, and his/her name doesn’t appear to be Trump.