29 August 2018 :Dollar bulls were missing in action yet again today as investors digested Jerome Powell’s dovish speech at the Jackson Hole Symposium last Friday.

The Greenback’s continued depreciation in recent weeks has raised questions on whether the impressive bull run could be coming to an end. Buying sentiment towards the Dollar was dealt the first blow following Donald Trump’s latest criticism of the Federal Reserve. Bears were offered another opportunity to attack after the minutes from August’s Fed policy meeting raised concerns over escalating trade tensions negatively impacting growth. With reports of the United States and Mexico securing a trade deal dimming the Dollar’s safe-haven appeal, further losses could be witnessed in the near term. Although market expectations remain elevated over the Federal Reserve raising interest rates next month and possibly December, the Dollar may need fresh inspiration to rebound higher.

As regards the technical picture on the daily charts, the Dollar Index has been relentlessly pounded by sellers in recent weeks with prices trading around 96.65 as of writing. A solid breakdown below the 96.50 level could encourage a decline towards 94.20 and 94.00, respectively.

Source: Lukman Otunuga, Research Analyst at FXTM

Reporting for EasyKobo on Wednesday ,29 August 2018 in Lagos, Nigeria