According to Chris Turner, global head of strategy at ING, narrative on the US dollar is slowly moving onto its next chapter as the Fed has connected the dots between Trump’s trade war and US business confidence, it seems that any news on increased trade tension is having a diminishing marginal positive impact on the dollar.

Key Quotes

“It seems the market is slowly but surely gaining confidence that the dollar is coming to the end of its eight-year bull run. Here, other banks have joined our view that President Trump might consider direct intervention to weaken the dollar later this year. The dollar also failed to gain any real benefit after a very rare 0.3% month-on-month rise in US core CPI yesterday. Instead, focus on the US fiscal position may be growing.”

“There’s only US PPI today and a Fed speaker (Charles Evans 16CET), but it looks as though the market is confident of a 25 basis point Fed cut on 31 July – especially with what we read as a pretty dovish set of June FOMC minutes. We think the investor dollar mindset has now shifted to ‘sell the rally’. DXY to drift to 96.35/50.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slides from 1.18 amid risk-off mood, US data eyed

EUR/USD is trading under 1.18, falling as the US dollar benefits from the risk-off mood. Worries about covid, China's techlash and tensions ahead of the Fed are weighing on sentiment. US Durable Goods Orders are eyed.

EUR/USD News

GBP/USD retreats from 1.38 as the dollar gains ground

GBP/USD is trading below 1.38, as the safe-haven dollar gains ground across the board. Earlier, sterling benefited from the drop in British covid cases. 

GBP/USD News

Gold slips below $1,800 as USD lingers near highs

Gold prices loiter near the $1,800 mark for the past five trading sessions. The US dollar remains steady near the four-month high ahead of the Fed’s interest rate decision. The prices moved cautiously despite the general negative sentiments surrounding the greenback.

Gold News

Dogecoin to retest critical support before overcoming doubt

Dogecoin price thrilled investors after posting a 17% surge on July 26. Following the swing high, DOGE has wiped out most of those gains as it retraces.

Read more

FX: 10 things to watch this week

Taking a look at the economic calendar, it is set to be a busy week for the forex market. There’s a central bank rate decision, GDP, inflation and employment reports scheduled for release. A number of big tech companies have ...

Read more

Forex MAJORS

Cryptocurrencies

Signatures