USD PRICE FORECAST: US DOLLAR INDEX EXTENDS RETRACEMENT LOWER AS FED INTEREST RATE CUT ODDS BULGE ON CORONAVIRUS CONCERNSDXY Inde
USD PRICE FORECAST: US DOLLAR INDEX EXTENDS RETRACEMENT LOWER AS FED INTEREST RATE CUT ODDS BULGE ON CORONAVIRUS CONCERNS
- DXY Index checks technical assist across the 99.00 deal with following the 1% slide in USD value motion off a three-year excessive amid mounting coronavirus issues
- The US Greenback dropped farther from its latest high all through Tuesday’s buying and selling session after weak client confidence knowledge fueled one other acceleration in Fed price lower bets
- Currency volatility continues to rise in line with US Greenback in a single day implied volatility readings throughout choose main foreign money pairs
The US Greenback Index (DXY) edged steadily decrease over the past three buying and selling classes. The most recent stretch of draw back in USD value motion is primarily attributable to a pointy rise in future rate of interest lower possibilities from the Federal Reserve being baked in after disappointing financial knowledge.
CHART OF FED INTEREST RATE CUT PROBABILITIES (FUTURES-IMPLIED)
Rekindled recession odds, largely because of the novel coronavirus outbreak and its opposed impression on international GDP development, serves as the important thing themes contributing to the spike in Fed price lower expectations over the previous couple of days. An inverted yield curve is probably going weighing on market sentiment and expectations as properly.
That, rate of interest merchants have priced in one other 18-basis factors of cuts from the…