TALKING TECHNICALS: Dollar may lose favour
The risk-free return on dollar cash could decline if the US Fed cuts rates
The US dollar has been the developed market currency of choice over the past 1½ years. In that time the US dollar index gained 11% from the January 2018 low of 88 to the high of 98 in May 2019.
But the technical picture for the index has begun to deteriorate somewhat, which suggests that the dollar’s dominance may be starting to wane.