The dollar is under pressure due to Saddam Trump with the federal and the anticipation to reduce interest

The US dollar exchange rate fell in August after the best monthly performance was achieved this year, at a time when investors are preparing to stagnate the US economy and lower interest rates, despite the ongoing high inflation. The Bloomberg Instant Blue index fell 1.7% this month and reduced the gains of 2.7% in July, which was the first month in which the index was registered since US President Donald Trump held office. Wall Street expects the dollar, as the global reserve currency, to continue its losses, which will bring its decline to 8% this year with the rise of signals about the slowdown in the economy and the willingness of the Federal Reserve to resume the interest rate reduction course. In the midst of this, Trump is questioning the credibility of the central bank and the accuracy of economic data, which weakens the attractiveness of the US currency more. Also read: Global investors are reducing hedging strategies against the dollar and in a memorandum released on Wednesday, Jayati Baharwaj, head of foreign exchange strategy at TD Securities, said that “the recent procedures for US administration have long -term repetitions, because they are likely to receive the dollar. pressure. ” The federal independence is under pressure, the dollar’s attraction has fallen as a result of the growing concern about the independence of the US Central Bank. Earlier this week, Trump tried to dismiss the Federal Reserve member, Lisa Cook, who held her post and announced a judicial confrontation, while she filed a lawsuit against the president on Thursday, which opened the door to a long road that began a Friday trial. Read more: Lisa Cook suggests that Trump, because of her attempt to isolate her from the federal reserve in this context, warned Layl Brinard, a former federal deputy chief, against a ‘real danger’ to isolate a number of heads of the local federal reserve banks next year as a result of political maneuvers of the White House. The dollar’s Bloomberg index did not see a major change on Friday after the data of the basic personal consumption cost index, which excludes food and energy and excludes the preferred scale of the Federal Reserve, is compatible with monthly estimates, with 0.3% in July compared to the previous month. At the end of the session, the short -term returns fell after federal president in San Francisco Marie Dali expressed her willingness to reduce interest during September. “If Trump controls his relationship with the Federal Reserve, it will simulate what some emerging markets have seen, which is not a supporting factor for the US currency,” said Sahil Mahatani, director of the Investment Institute of Ninty Management in London. Also read: Bill Delly: The State of the Federal Reserve was not worn. But I am now anxious that technical analysis shows a clear and clear direction for the US currency, as traders currently expect a slight decrease in the dollar during a three to six -month period, based on the pricing of options contracts on Friday. The dollar index broke its moving average for 100 days in early March, and it has remained without it since that time, while two attempts to penetrate the level of this month have failed, strengthening the position of the Mediterranean as a resistance barrier before climbing the currency. In the same context, the non -commercial traders, including hedge funds, asset managers and other market speculators, reduced their dollar’s sales centers to about $ 5.6 billion during the week ended August 26, according to the latest data from the Futures Trading Commodities for Commodities collected by “Bloomberg.” The ‘less attractive’ dollar, chairman of the Federal Reserve, Jerome Powell, indicated in his main speech during the ‘Jackson Hall’ symposium, to prepare to lower interest rates at the next meeting of the monetary policy on September 17. On Friday, interest contracts showed 80% to reduce the federal stake in September, with a full price of a total of a quarter of a quarterly point to the end of 2025. Facilitation was priced until September 2026. Dollar deviations give the sparkle to the emerging market. Mahtani was of the opinion that “besides a slight increase in inflation makes the US currency less attractive.” Expectations for the continued weakness of the dollar are likely to lead international investors to improve their foreign currencies hedging over their owning US assets. The hedging figures have risen since the beginning of the year with retirement funds and Danish insurance companies and, according to May and June, were stable, according to ‘Morgan Stanley’, while the latest details of the rest of the European countries in addition to Japan and Australia are not yet available. Foreign investment prints on the dollar, Serena Tang, the international president to investigate the assets of “Morgan Stanley” assets: “We are holding a positive look at US assets, but not to the US conductors. According to Mahamani of “Nanite One”, he has estimated that about trillion dollars of these assets can be sold if the hedging rates return to their normal levels.