US Dollar Index update
The Dollar index is under further downside pressure as the majors push higher this week. EURUSD is making new highs and with the Federal Open Market Committee rate statement due, investors are pricing in their belief that the existing low interest rate will stay at 0.25 percent.
The US debt situation is also weighing heavily on the Greenback with ongoing discussions around a potential default by the US on its payments. The chances of this happening are extremely low but this negativity is the last thing the Dollar needs at present.
With this in mind it is hard to see any respite for the Dollar in the near term.
The attached chart show how the Dollar index has eased through a significant historical support area and is now falling towards the 2008 lows – which dollar bulls will hope offers some kind of demand.
Nick can be found writing further Dollar analysis at www.forex-fx-4x.com