The US Dollar Index touched its lowest in more than 2 years, at 93.335, during early Wednesday trading. It is interesting to notice the weakness of the greenback against both risk and safe haven currencies, denoting investors’ concerns over the ability of the American economy to bounce back. On Tuesday, some of the worst affected states published record numbers of deaths caused by COVID. Meanwhile political uncertainty hangs over the US Senate, with lawmakers divided over the size and structure of a new relief package, which may lead to delays in its deployment. Amidst this scenario, the Fed will conclude its July meeting later today, with most observers expecting the continuation of the dovish stance that has characterised the American central bank over the last few months. Looks like all the stars are aligned and there may be further downside risk ahead for the US Dollar.
