Dollar drops for fifth consecutive day

The greenback has been dropping for five consecutive days now, and the dollar index was down 0.2% on Wednesday. It was trading at around 92.25 during the morning session.

More importantly, the index now sits in the critical support area of summer lows near 92.00/92.20, and if the price breaks below this level, the medium-term downtrend could be confirmed. That might lead to another leg lower in the USD and further selling of the greenback across the board.

The Fed’s Chair Powell reiterated yesterday that the central bank ain’t done with the stimulus, and we can expect a long-term commitment to support the economy. 

Later in the day, the EU CPIs are due, with inflation running way below the ECB’s target. However, the ECB has already said that it will provide more stimulus, probably at its December meeting. 

Despite the ongoing USD weakness, metals were trading lower/flat and failed to capitalize on the sliding dollar. WTI oil was still trading above the psychological 40 USD.

Meanwhile, US stocks are attacking their recent highs, and it looks like this year’s Christmas rally will push equities to new all-time highs. 

Source: https://www.axiory.com/market-news/dollar-drops-for-fifth-consecutive-day