Currency Traders Panorama View on U.S Dollar Signals Blurry Outlook

A the time of writing this report the U.S. Dollar Index that monitors the greenback strength against a basket of major global currencies (Euro, British pound sterling, Japanese Yen, Swedish Krona, and Canadian dollar ) was ranging between 90.977 – 91.145 just slightly above the two-and-a-half-year low of 90.47 seen at last week trading session.

Although recent price action show, currency traders are slowly buying the U.S dollar, which is regarded among many has a safe haven currency amid concerns whether the U.S congress can reach a compromise over the latest stimulus deal in bailing out the fragile U.S economy presently in play.

Price action also reveals currency traders are cautiously placing their trading bets on the bias that reveals the US Dollar index is currently trading around the price level seen since April 2018, meaning a change in the prevailing narrative would be required in pushing the U.S dollar significantly up amid the inverse relationship between the dollar and foreign asset prices prevailing.

Currency traders are also focusing on the European Central Bank (ECB) amid blurry outlook hanging in there with risk sentiment trading suspended arbitrarily, as the Euro was largely non-volatile to reports revealing a breakthrough in EU budget discussions.

That said, a significant break-through in the pending stimulus deal could weigh heavily on the greenback’s value coupled with the expectation of more quantitative easing from the all expected US FOMC meeting about to take center stage and possibly some sort of yield curve control pivot.