Hannah Arendt-Lang

The U.S.

dollar has suffered its longest losing streak since 2020.

This primarily has to do with changing expectations about central banks across the globe.

So here at home, we have the Federal Reserve.

They have an upcoming meeting in December.

And it's now widely expected that policymakers will cut interest rates.

Investors are also looking at how President Donald Trump is talking about his next pick for the Fed chair.

And it seems really likely that his selection will be somebody who's quite dovish, which means that they will be inclined to lower rates even further.

But the situation is different overseas.

In contrast, what we've heard this week from other major central banks is they're taking a different path.

So the Bank of Japan recently indicated that they might hike rates.

And the European Central Bank seems like it's going to hold steady.

We know that when interest rates come down, it weakens a currency.

And then when they go up, a currency gets stronger.

And that dynamic is cast into even sharper relief when you have major central banks around the world going in different directions.