The US Dollar continues on a downwards trend, with the index that measures its performance versus a basket of other major currencies down more than 0.3% during the early part of Tuesday’s session. After shedding almost 2.5% during the month of November, the Dollar Index looks set to remain on a slow but inexorable decline as investors price-in the prospect of the US central bank expanding its bond buying program. With a political stalemate in Washington blocking the release of fiscal stimulus the Fed will have little choice but to increase its easing policies, to somehow compensate for the absence of fiscal support for the US economy.
