XE Market Analysis: North America – May 25, 2021

The dollar has hit a near four-month low by the measure of the narrow trade-weighted DXY USD index. The new low is 89.53, and the three-year low that was seen in the first week of January, at 89.21, is back in scope. The low in January was seen just ahead of the Georgia run-off elections that swung the balance of power in the Senate to the Democrats, which paved the way for the super-sizing of fiscal stimulus policy, which in turn supported the dollar during Q1 on the view that the outsized spending would force the Fed to taper monetary stimulus sooner rather than later.