Dollar index downtrend just started, to retest multi-year low

DESPITE the current interest rate hike cycle that began in December 2015, the dollar index (DXY) has been on a decline. Since 2017, the Fed has hiked the Fed Funds Rate (FFR) four times, lifting the FFR from 0.75 per cent to 1.75 per cent but the DXY went into a selloff instead.

The DXY has fallen 14 per cent after forming a top at the…