US Consumer credit has fallen significantly, representing telltale signs that debt-intensive purchases have been falling signalling within North America that growth is beginning to show serious signs of depressed growth, of those similar to the '08 crisis. Because the US Yearly GDP is fueled by roughly 68% consumer-based debt/spending, this may be the beginning of a significant deterioration of the dollar as we head into wave 2 of COVID globally. This coupled with a looming presidential election does not bode well for the US dollar
. We are beginning to witness the significant effects in the inherent damages of a global pandemic on the 'mighty-US' economy. This is a very short-term forecast, I believe DXY
will rally into the Asian-Session while selling off into Late-London and Early-New York.
Investors will turn to 'neutral-risk-on' currencies such as EURUSD , GBPUSD as New York opens tomorrow. However, it is to note that significant news weighs on the pound as Brexit talks falter. Further analysis will be provided on the majors before NY open tomorrow.
In the long-term, I believe we will continue to witness this deterioration until the market fully digests the chosen presidential candidate and a vaccine is in the distribution phase within the USA. (4-6 month forecast)
As always, use proper risk management practices, matching your risk tolerance. This is solely an opinion, not financial advice.