The Dollar index continued to come under pressure and appears to be on course to end lower for the 5th consecutive week. We question how m

GBL: DXY – How Low and How Long Can This Cycle Last?

FX Tech Flash by Saktiandi Supaat

FX Research

The Dollar index continued to come under pressure and appears to be on course to end lower for the 5th consecutive week. We question how much lower the USD can go. We also noted the positive correlation trade between USD index and S&P 500 appears to show signs of weakening. Indeed correlation coefficient hit 2.5-year high of 0.71 before turning lower (higher US equities but a weaker USD). We question how much longer can this cycle last...