XE Market Analysis: North America – Jan 19, 2018

The USD index (DXY) has tracked lower despite new U.S. yield lows, with the narrow trade-weighted index down 0.3% at 90.20, bringing Wednesday’s 37-month low to within 6 ticks. Yield gains across the globe, coupled with a burgeoning global risk-on sentiment and an associated investor hunt for higher-beta assets, along with concerns that the stopgap funding bill in the U.S. won’t pass the Senate, have been weighing on the dollar. The U.S. currency is now in its fifth consecutive quarter of declines, which is the most prolonger downturn since 2007-08.