USD weakness

Troy Bombardia
2020-07-15
The U.S. Dollar is slowly sliding downwards after a brief but sharp spike in March.

The U.S. Dollar Index is slowly sliding downwards after a brief but sharp spike in March. The slow slide has depressed dollar sentiment. Here's the Dollar Optix's 30 day average:

When dollar sentiment was this low in the past, it wasn't a clear contrarian bullish sign for the USD. On the contrary, it often led to more short term losses over the next 2 weeks before the USD Index could find solid ground.

Since the USD and gold have somewhat of an inverse relationship, this was a more-bullish-than-random factor for gold over the next 2 weeks:

As for the S&P 500, this wasn't a consistently bullish or bearish factor on any time frame:

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