Dollar

U.S Dollar Set to Record its Worst Q4 Drop Since 2003

The greenback is set to record its worst Q4 drop since 2003; taking to account it has plunged by 4% in value.

Prevailing price action reveals the massive plunge in the U.S dollar index remains its poorest performance in the final three months of 2020 since a 6.4% drop recorded in Q4 2003; as crude oil bears are push the U.S dollar index lower to a value not seen in years.

In addition, U.S dollar bears are controlling the greenback’s price action amid the recent rollout of COVID vaccines in play at the United Kingdom and United States thereby pushing the U.S index value below a strong critical support level of 90 points at about 11.40 am GMT.

Still, currency traders on many fronts might resume their buying spree, if the value falls around 88.50-89.75 points on the bias that such price level could push the greenback sellers back at least for the near term, taking to consideration prevailing signs reveal the number of COVID-19 caseloads in the United States is worsening.

Many currency experts are anticipating the geopolitical uncertainty created by President Trump on his unusual unilateralism position on political and international issues also contributed in some way in giving currency bears enough grip in pushing the U.S dollar value in recording losses of 6.88% year to date.

However, some currency traders anticipate the U.S dollar might rebound strongly next year, amid the era of expansive stimulus support, taking to consideration that the incoming president Joe Biden would most likely undo some of the damage caused by his predecessor by recommitting to multilateralism and display a much warmer approach to its Western allies.

For a look at all of today’s economic events, check out our economic calendar.