US Dollar’s Bullish Run to End in Three Months?

The dollar's recent strength is likely to fade within the next three months and could see high volatility in the coming weeks, ahead of the

Arslan Butt•Tuesday, October 6, 2020•1 min read

According to a recent Reuters poll, the dollar’s recent strength is likely to fade within the next three months and could see high volatility in the coming weeks, ahead of the US presidential election. The US dollar had the best performing month so far this year in September when it gained around 2% of its value.

However, over the course of the year until now, the greenback is down by over 3% against its major peers. Strategists polled by Reuters anticipate that this weakness is unlikely to go away over the course of the coming year.

The first presidential debate of this year’s election season ended up strengthening the value of the reserve currency, but gains remain limited amid expectations for more fiscal stimulus measures. The coronavirus relief package could deter the dollar’s bullishness and weigh on the currency in the near future.

Meanwhile, Trump testing positive for coronavirus appears to be supporting the dollar for now. Strategists also expect the US dollar to make some gains over the rising political uncertainty in the run up to the elections.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.