The US dollar index is currently down -1.7% in May, which has effectively seen it wipe off April’s gains and snap a 4-month rally. The last time the dollar rose for four months was just ahead of the 2022 high, and if history were to repeat it points to another couple of months of the dollar’s decline and for bearish momentum to accelerate. As things stand, the USD index is close to confirming a dark-cloud cover on the monthly chart, which itself is a higher low relative to the 2023 high. And should the Fed throw in the towel and begin signalling a rate cut, we could be looking at a quick break below 104. I’m just not ... (full story)