Dollar Index wobbles above 95.00
It is thought-provoking how the Dollar has weakened to a monthly low against its major peers despite trade disputes and global growth fears promoting risk aversion.
President Trump’s repeated criticism of the Federal Reserve coupled with soft U.S. inflation data remain key drivers behind the Dollar’s depreciation. Although the Greenback still maintains its status as a safehaven currency in times of uncertainty, further losses could be experienced in the short term. The potential downside is based on a technical breakdown below the 95.00 support level on the daily timeframe. A solid weekly close under this level has the potential to instill bears with enough confidence to attack 94.60 and 94.35, respectively.