The U.S. dollar has been in a steady decline since December.
Over the past six months the dollar has fallen 4.22% against the pound and 6.72% against the euro.
Furthermore, recently the bears’ case for the greenback has grown stronger as wagers on Fed hikes fade.
Hedge funds and other speculators are the most bearish in four years.
The greenback sank to a 10-month low Friday. This rounded out its worst week since May. This was caused by weaker-than-forecast economic data. This in turn raised doubts about the prospect of additional Federal Reserve tightening this year.
“The bias is going to be on the weaker side given the weakness of the data and the expectation of the ECB sounding a bit more hawkish.” This according to Sireen Harajli, a foreign-exchange strategist at Mizuho Bank Ltd. in New York. “If that happens, the #dollar could weaken to $1.16 per euro from about $1.1470 Friday.”