DXY Index Tests Key Support for Fourth Consecutive Day

Talking Points:

– The US-China trade war took another step forward yesterday, but with the latest round of Trump tariffs clocking in at 10% as opposed to 25% as expected, risk appetite has been only impacted marginally.

The US Dollar should see losses accelerate upon a DXY Index close below the August low at 94.43.

Retail trader positioning is becoming more outright bearish towards the US Dollar.

See our longer-term forecasts for the US Dollar, Euro, British Pound and more with the DailyFX Trading Guides

The US Dollar (via the DXY Index) has continued its September struggle, working on its sixth down day over the past seven; of the 12 trading days thus far this month, the DXY Index is down in nine of them. We can immediately rule out greenback weakness as a result of speculation around the Federal Reseve, given that next week’s meeting still sees 95% chancce of a 25-bps rate hike, according to Fed fund futures.

Instead, with an otherwise quiet economic calendar in the rearview mirror as well as down the road ahead, movement in the US Dollar over the past 24-hours has been largely tied to shifting perceptions around

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/top_fx_headlines/2018/09/18/DXY-Index-Tests-Key-Support-for-Fourth-Consecutive-Day.html