This Week May See Bearish USD

WikiFX News (21Sept.) - Affected by the Fed decision, the US dollar, technically speaking, has showed an overall trend of weakness recently, with a high volatility. And the USD is expected to decline because of a series of events including the Federal Reserve Chairman Jerome Powells testimony this week.

Federal Reserve Powell and the Secretary of treasury Steven Mnuchin will attend the House Financial Service Committee Hearing on this Tuesday. And Powell will testify on coronavirus measures on this Wednesday. It is expected that the optimistic outlook and views may keep a lid on the risk aversion.

With a recent better data and overall stable trend, USD, featuring a safe haven currency, is likely to be encumbered by a relatively optimistic status. In addition, USD fell again after it was buoyed up by the Fed rate decision, which indicators a strong bearish sentiment in the present market. Therefore, USD may be set to weaken overall this week.

The Manufacturing, Services and Composite PMI data in September will be released this week. It is estimated that the data will be above the level of 50.00. Even though it is expected to be lower than the previous, in accord with the opinion that the economy is experiencing slowdown, the risk appetite in market may bring bad effect on USD.

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Chart: USDX Trends