Dollar Tug of War Continues: Why Did The Dollar Index Leave Its Tight Trading Range?

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For about 2 full months the US Dollar Index (DXY) has been in a tight trading range. But towards the end of May 2020 it left the tight trading range. Why?

It might have to do with the US Treasury’s borrowing needs of a projected $3 trillion for Q2 2020 and more in Q3 2020 as normally the US Treasury is flush with cash after tax day in April but this year that is clearly not the case.

 

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