Dollar falls amid heightened expectations of less hawkish Fed policy

According to Reuters, the price of the dollar concerning basic currencies has fallen to a three-week low. The signs of a weakening economy in America provoked rumors that FRS will soften the position.

As per the data overnight in August, the cost of housing in the US fell as the growth in credit rates reduced demand. This comes as there are signs that the rate hike is already dragging down the country's economy.

According to the head of FX strategy at National Australia Bank Ray Atrill, it isn’t yet the peak of the US dollar, but there are signs of a slowdown. If the market adjusts to the Fed's reversal, it will drop to 50 basis points and possibly end the tightening cycle below 5% next year. It is necessary to look at the messages of the Federal Reserve System next week. After that, it is possible to form opinions about the strength of the US currency.