More Red From the Greenback?
The U.S. dollar, also known as the greenback, is heading for its biggest monthly loss since January 2018, and we could be due for a more prolonged period of weakness after more than 10 years of strength.
As shown in the LPL Chart of the Day, the recent drop has brought the U.S. Dollar Index down to the 200-day moving average near 97.5. If the dollar breaks below that level, we could see another 1–2% of downside, possibly down to summertime lows.
“Sentiment on the dollar had become overly optimistic this summer,” said LPL Financial Senior Market Strategist Ryan Detrick. “From a co
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