The US dollar index rebounded from a more than three-year low at the start of the European trading session. The index, which measures the performance of the greenback against a basket of major currencies, has declined by approximately 11% since the start of the year. This reflects the fading of the so-called “American exceptionalism”—a term used in recent years to describe a global market dynamic in which US assets outperformed their peers, seemingly shielded from challenges affecting other regions. Against this backdrop, the passing of the Big Beautiful Bill by the US Senate yesterdaycould be another step towards exacerbating fiscal imbalances in the world’s largest economy and further discourage investor appetite for US assets. At the same time, growing expectations of near-term rate cuts by the Federal Reserve continue to weigh on the greenback, adding to downward pressure on the dollar.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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