The US Dollar Index fell by about 2% in August, with both technical and fundamental indicators pointing to continued weakness.

The US Dollar Index, DXY, fell about 2% in August, partially erasing the gains made in July - the first month of increase since President Trump took office. Wall Street predicts that with signs of economic slowdown and the Fed seeming ready to cut interest rates again, the dollar may continue its over 8% decline so far this year. Trump's questioning of the Fed's credibility and the reliability of economic data further weakens the attractiveness of the dollar. "Recent actions by the US government will have long-term effects," wrote Jayati Baraladwaj, Head of Foreign Exchange Strategy at TD Securities, "this is eroding the safe-haven status of the dollar, and the risk premium should start to weigh on the dollar." Technical analysis also shows that the dollar is in a clear downward trend. Options pricing on Thursday showed that traders expected a slight decline in the dollar in the next three to six months. The US Dollar Index broke below the 100-day moving average in early March and has been under pressure. Attempts this month to break above the average have failed twice, making it a significant resistance level.