Dollar Weakens Against Major Rivals

28/07/2021

The greenback could not hold on to its gains and went down against major components of DXY, trading below 92.50.

The US Dollar Index (DXY) edged slightly lower and lost its strength against all its major rivals like EUR, GBP, JPY, etc. Investors are paying close attention to the US Fed’s rate decision that is due tomorrow. If the Fed catches the market off-guard with some hawkish surprises, then a U-turn can be expected in the index. However, the US Dollar may continue to be on the offensive against ASEAN currencies irrespective of Fed rate decision.
 
EUR/USD recorded fresh highs for the week, closing at 1.1840. If the pair maintains the momentum and crosses the daily highs, then it can reach even up to 1.1920.
 
GBP/USD, on the other hand, took a rebound and registered minor gains capitalizing on dollar weakness. The pair edged towards 1.3900, making close to 0.05% gains.
 
AUD/USD picked up overnight capitalizing on the dollar weakness and remained steady and eased through the 0.7350 mark, thanks to additional help from an upbeat Australian Consumer Price Index (CPI) data. On the other side, EUR/AUD bulls maintain good control and are seeking a higher daily high.
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