Financial market analysts point out that current short sellers of the dollar are facing a tough choice. Although the dollar is overall in a downtrend, the recent falling momentum has started to slow down. The employment data released last week has temporarily restrained the dollar's upward trend, but it may take some time to restart a significant downtrend.



Currently, a large number of investors in the market have laid out short positions on the US dollar, which means that even if the dollar continues to fall in the future, its speed and extent may be limited. It is worth noting that the interest rate differential between the dollar and the yen as well as the euro remains significant, providing some support for the dollar.

Although the rapid fall of the US dollar triggered by employment data may attract more investors to join the short camp, it also simultaneously reduces the possibility of a further significant fall of the dollar. The market generally expects that the Federal Reserve may implement its first rate cut as early as September 17, while the next rate cut may have to wait until December 10. For those traders expecting a fall in the dollar, this long waiting period may bring enormous capital cost pressure.

In this situation, investors need to weigh potential returns against holding costs, and closely monitor economic data and changes in central bank policies to adjust investment strategies in a timely manner. At the same time, they should also be cautious of the short-term volatility risks that may arise from changes in market sentiment.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 4
  • Repost
  • Share
Comment
0/400
WagmiWarriorvip
· 08-05 14:15
It's stable, it's stable. No loss in this opportunity.
View OriginalReply0
MEVSandwichMakervip
· 08-04 14:46
Bearish on the dollar again, suckers never learn.
View OriginalReply0
CoffeeNFTsvip
· 08-04 14:46
Starting to trap again.
View OriginalReply0
LiquidatedNotStirredvip
· 08-04 14:35
Entering a position and trapped now can only be endured.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)