The United States dollar is expected to fall by six weeks with the expected cooling down of the main cause

ON 14 AUGUST, THE UNITED STATES DOLLAR INDEX DXY FELL TO ITS LOWEST LEVEL SINCE MAY, PROMPTING TRADERS TO FURTHER REDUCE EXPECTATIONS OF INTEREST INCREASES DURING THE YEAR DUE TO UNEXPECTED WEAKENING OF UNITED STATES RETAIL SALES DATA. FOLLOWING THE RELEASE OF THIS ECONOMIC DATA, BOND MARKET TRADERS WITHDREW THEIR BETS THAT THE FED WOULD RAISE THE COST OF BORROWING IN 2026 — AN AUSTERE NARRATIVE THAT HAD BEEN SUPPORTING THE DOLLAR FOR RECENT MONTHS. THIS DECLINE HAS MADE IT POSSIBLE TO RECORD A WEEKLY DECLINE IN THE UNITED STATES DOLLAR FOR THE SIXTH WEEK OF THE PAST SEVEN WEEKS. THE UNEXPECTED WEAKNESS OF LABOUR MARKET REPORTS RELEASED LAST FRIDAY, COMBINED WITH MODERATE INFLATION DATA THIS WEEK, CONTRIBUTED TO THE RECENT DECLINE. KIM XIAN