"US Dollar Struggles Amidst Weak Economic Data and Rate Cut Outlook"
TL;DR Summary
The US dollar has sunk to its lowest level since late July, with the Federal Reserve's dovish stance and lower Treasury rates contributing to its decline. With US yields biased downwards and a risk-on sentiment in equity markets, the dollar may continue to weaken in the near term. This could lead to potential gains for gold prices, EUR/USD, and GBP/USD. Technical analysis suggests that EUR/USD is approaching resistance at 1.1000, while GBP/USD has rebounded off support at 1.2600. Gold prices have recovered after bouncing off trendline support at $1,975 and are approaching a key resistance level at $2,050.
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