Worries about the trade war have not disappeared and the atmosphere on Wall Street remains bearish on the US dollar.

In a week where the epic rise in the US stock market and the concerns of a recession were brushed aside, forex traders continued to have a pessimistic view of the US dollar. Strategists from JP Morgan and Deutsche Bank believe that the US dollar will continue to weaken, with options traders showing the most negative sentiment in five years. The US dollar index is still hovering near its low point in April, indicating that despite the easing of trade conflicts boosting other markets, forex investors remain cautious about re-entering the market. Market volatility has been ongoing for some time, with the US dollar falling by 6% against a basket of currencies this year. Many believe that the inconsistency and unpredictability of US policymakers have dampened the attractiveness of the US dollar. Additionally, despite denials from Washington, some investors still suspect that the Trump administration may be seeking to use a devaluation of the US dollar to strengthen the foundations of US manufacturing.