U.S Dollar is Losing Steam, COVID-19 Attacks Out of Control

The macro giving the bears such an easy ride include the ever-increasing number of COVID-19 infections counterbalancing hopes that Pfizer’s COVID-19 vaccine could curb such menace at a faster rate in order to jumpstart the world’s fragile economy negatively disrupted at unprecedented levels by the ongoing viral onslaughts that seem not to be slowing down.

At the time of filing this report the, U.S. Dollar Index used by currency traders to monitor the greenback strength against a basket of major currencies dropped lower by 0.16% to 92.597 points.

U.S dollar Bears are riding on the political disconnect presently playing out at the world’s largest economy, as President Trump head for legal options on invalidating Joe Biden’s win in the recently concluded U.S election, as triggered the U.S dollar index to trade near its two year low, and could likely breach below the 92.5, amid fears that COVID-19 attacks are now getting out of control.

Data retrieved from Johns Hopkins University, revealed 54 million individuals are now infected with the COVID-19 virus and the death toll as surpassed 1.3 million deaths as of Nov. 16.

Such Macro makes it hard for the U.S dollar Index to rebound above the 93.00 level, although the prevailing price action reveal U.S bears ride appears exhausted, there seem to be no strong catalysts coming to aid the U.S dollar bulls from roaring hard.

That said, it’s fair to say the U.S dollar bears have all to play for now, as recent price action show the midterm trend at the DXY market is bearish, meaning its likely currency traders see a continuation of the downtrend, and also a potential visit of the 2020 lows in the 91.75/70 range.