​Dollar Dives to New Multi-year Low

The USD index sank to a new multi-year low last seen in mid-2018, with the
greenback's losses extending to 9% from the 2020 high. The catalysts for the
USD selling are piling up, with worsening Sino-US tensions, an extended build
in the EUR net long position, month-end greenback sales and the Fed
rate decision Wednesday all adding to the negative dollar bias.

The dollar's drop worked in favour of precious metals, prompting a new intraday
high in spot gold at $1,945.72 alongside strength in haven FX as USD/JPY dropped
well below Y106. Despite this, CHF failed to benefit, with the EUR's persistent
rally largely responsible - EUR/CHF rallied through crowded resistance at
1.0795-97 and looks set to close above 1.08 for the first time since early June.

The data calendar Tuesday is lighter, with just US consumer confidence on the
docket. Earnings from Pfizer, Visa, 3M and McDonald's are due. No central bank
speakers are currently scheduled, with the Fed in media blackout ahead of
Wednesday's policy decision.