28 June 2019 : The Dollar Index (DXY) is struggling to lift itself off the psychological 96 support level, as the Greenback remains doused by the Fed’s dovish stance. The final-read on Q1 US GDP reported lower-than-expected consumer spending growth during the quarter, which suggests that US economic growth momentum is waning. Given the moderating economic indicators in Q2, a period when US-China tensions intensified, the data seems to justify the Federal Reserve’s openness to lowering US interest rates.

The prospects of looser US monetary policy are exerting downward pressure on the Greenback, and the subdued DXY performance is expected to continue as long as the Fed’s easing bias remains evident. The headlines out of the Trump-Xi meeting may prove to be a major catalyst for the Dollar’s next move, with DXY potentially going on a tear if the door to a US-China trade deal is slammed shut this weekend.

Reporting for EasyKobo on Friday , 28 June 2019 in Lagos, Nigeria

Source: Han Tan, FXTM Market Analyst