The dollar is trading somewhat weak on Thursday, following the latest Federal Reserve meeting minutes released on Wednesday. Analysts at Brown Brothers Harriman warn that declines in the US dollar index could accelerate towards 99.80 if support at 101.80 gives way.
Key Statements:
“The DXY index is trading near 101.90 with the market taking the Fed minutes as dovish. The key level to watch is 101.80 as a clean break below would point to a test of the 21 Apr low near 99.818.”
“We still view this recent move lower as a correction within the longer-term dollar rally, but we continue to be surprised by how far the dollar has fallen since May’s highs.”
“We continue to believe that the pessimism regarding the US is overblown, with markets overly viewing the troubled outlook for the Eurozone, the UK and Japan.”
Source: Fx Street
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