XE Market Analysis: Asia – Aug 28, 2020

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The DXY bounced modestly in N.Y. on Friday, after coming under pressure overnight, hitting an eight-session low of 92.20 early in the day. The Dollar’s move lower apparently came as the market has determined that the Fed’s new inflation policy will keep interest rates low for even longer, which should continue to keep the USD under pressure. The modest subsequent gains on Friday came on the back of stronger than expected income and consumption data, and improved consumer sentiment. Continued improvement in the U.S. economy will likely offset some rate related weight on the Greenback.