Analysts at Brown Brothers Harriman explained that they had anticipated the dollar was going to be under pressure in the first part of the week.
“Today’s losses are coming despite slightly wider US 2-year premiums”
“Position adjusting seems to be the main factor, but it is not immediately clear if it is ahead of the ADP jobs estimate and FOMC meeting tomorrow or the US election.”
“Trump’s support had bottomed before the FBI re-opened the investigation into Clinton’s emails, and his support appears to be continuing to edge higher.”
“We noted in our last technical view that the Dollar Index snapped a three-week advance last week.”
“We identified initial support in the 98.00-98.20 area and warned that a break could see 97.60. Today’s low thus far is 97.74. The Dollar Index has fallen through the 20-day moving average for the first time in a month.”
“A break of the 97.60 area would suggest a deeper correction is in store that could carry it toward 96.75.”