Massive Decline In The US Dollar Index As Political Chaos Rises

There has been an ongoing crisis in the US economy from the very beginning of the year 2017.The US dollar index secured a 14-year record high in the global market after the FED hike their interest rate in December 2016 FOMC meeting minute. Most of the leading green bucks investors thought that the market will significantly rally higher but things turned out to be negative for the green bucks as the market absorb most of the bullish momentum of the green bucks prior to the year. On the weakness of the green bucks, the Aussie dollar sentiment turned extremely bullish in the global market and the AUDUSD pair started a strong bullish rally from the very beginning of the year 2017.Some of the leading economist researchers are thinking that the green bucks will face strong bearish pressure in near future and this will ultimately act as a catalyst in the CFD trading industry for the establishment of the medium-term uptrend in the AUDUSD pair.

Dollar hits fresh six-month low: Due to the recent ongoing political crisis in the U.S economy, the U.S dollar index hit the 6 months low in the global market. According to the leading researchers in the CFD trading industry, the dollar is most likely to remain under strong bearish pressure in the upcoming week as no promising statement from the U.S president has been imposed to create a positive U.S consumer sentiment. On the other hand, Mr. Trump ordered FBI president James Comey to put an end to the current agency investigation. Such a drastic action from the Mr. Trump created a strong negative sentiment in the global market pushing the dollar lower against most of its major rivals. During the extensive weakness of the green bucks, the Aussie dollar rallied higher in the global market establishing a medium-term uptrend in the currency market.

Market conditions: Most of the leading investors in the global market in the CFD trading industry is thinking that the green bucks will remain under extensive bearish pressure for the upcoming week unless the FED comes up with a hawkish hike in the FOMC meeting minute. According to some leading currency analyst, an imminent interest rate hike from the FED is extremely crucial to bring stability to the U.S economy. But the recent performance of the U.S economy compared to the Aussie economy is extremely bad and an immature rate hike will weaken the green bucks in near future.

However, if the FED manages to come up with a solid rate hike in the upcoming days then we might see a bullish recovery attempt in the green bucks in near future. During the recent weakness of the green bucks, the EURUSD pair gained near about 0.68 percent in the global market and traded at 1.1176.However, after hitting the significant high at 1.1176 the EURUSD pair fell in the global market as the U.S initial Jobless claims data came out to be positive. On the other hand, the blooming Aussie economy rallied higher in the global market prior to the week closing. The AUDUSD pair gained near about 0.26 percent and traded at 0.7437 imposing a fresh buying pressure.

Summary: The upcoming days is going to play a major role in the US economy. If the FED manages to hike their interest rate in near future then we might see a decent bullish ride in the US dollar index in the global market. However, some of the leading economists are thinking that the rate hike program by the FED will not be enough to push the green bucks higher in the global market. Due to the recent weakness of the US dollar index, most of its major rivals are rallying higher in the global market. Consequently, traders are making a decent profit just by buying the Aussie dollar in the global market.