TechFlow, on August 29, according to Jinshi Data, the dollar index DXY fell about 2% in August, partially erasing July's gains—the first monthly rise in the dollar since President Trump took office. Wall Street expects the dollar may continue its year-to-date decline of over 8%, as signs of economic slowdown emerge and the Federal Reserve appears ready to cut rates again. Trump’s questioning of the Fed’s credibility and the reliability of economic data has further weakened the dollar’s appeal.
"Recent actions by the U.S. government will have long-term implications," wrote Jayati Desai, head of foreign exchange strategy at TD Securities. "This is eroding the dollar’s safe-haven status, and risk premiums should start weighing on the dollar." Technical analysis also shows the dollar is in a clear downtrend. Option pricing on Thursday indicated traders expect a modest decline in the dollar over the next three to six months. The dollar index broke below its 100-day moving average in early March and has remained under pressure. Two attempts this month to break above the moving average failed, making it a key resistance level.
