The US Dollar loses its attractiveness

Many of us may be wondering why the Dollar has lost its bullish momentum if the fundamentals from the US have been coming out better than expected. The reality is that even though new jobs have been created in the United States and the unemployment rate has dropped, this has failed to provide higher wages for the American workers. Therefore, inflation is not a problem for the US economy at the moment and the FED is in no rush to raise its interest rates. Today’s FOMC minutes may show that the central bank is holding on raising rates until they see prices really going up. That is why most investors are preferring to stay on the sidelines and are not raising their bets on the greenback just yet.