US dollar has the most dramatic time during 2019. Many political and economical affected the stability direction.
- The Dollar’s level of activity measured through the 52-week range is nearly the lowest on record
- President Trump’s critique of the Euro and Yuan may signal a trade war evolving to currency war
Preview of the Q4 US Dollar trading
While there are thousands of economic matters buffeting the world's most liquid currency, there are certain considerations that have commanded the Dollar’s reins more readily these past months, and will likely continue to do so moving forward.
While trade wars (China Vs US) have been a critical point as to whether they can confer some measure of benefit or if they are clear detriment to the United States, data and sentiment surveys are starting to show clear strain on the economy. That may raises the pressure to over-taxed girders to the past decade of expansion. what if the central bank moves too slowly, and refuses to act or the market simply deems it incapable of holding back the tides of change?
DOLLAR DXY CHART 2019
A slide down the monetary policy scale and/or economic struggle could readily pose a striking motivation for the Dollar relative to global counterparts. While the US central bank has thus far shown little enthusiasm to act in an effort to afford a cheaper currency and thereby growth through trade, there are forces that are pushing aggressively for just such a solution. US President Donald Trump made no effort to hide this clear interest through the past quarter.
White House could attempt a currency intervention as a bid to buy more time. In an increasingly competitive world and with elections starting to role forward, unorthodox options may look more appealing. If indeed this line is followed, the implications seem acutely straightforward for the Greenback.