Yesterday, the struggling US dollar suffered another "fatal blow" from two major "bombs", causing a sharp decline.

First Bomb - US CPI

Firstly, the highly anticipated US CPI data was released on Tuesday and helped confirm last week's lower than expected salary growth data.

The latest data from the US Department of Labor shows that the monthly CPI rate in February increased by 0.2%, and the annual CPI rate in February recorded 2.2%; The monthly core CPI rate in February was 0.2%, and the annual core CPI rate in February was 1.8%, both in line with market expectations.

Although the CPI data is almost in line with market consensus expectations, lower inflation data compared to the previous month reduces the likelihood that the Federal Reserve will need to raise interest rates faster than expected.

Although this relatively mild inflation data initially boosted the stock market, the US dollar is under pressure due to the urgency of the Federal Reserve possibly reducing interest rate hikes.

The second bomb - Trump replacing Secretary of State

Shortly after the release of the US CPI on Tuesday, the White House has released another "hot news"! The news that US Secretary of State Rex Tillerson has been fired and replaced by Central Intelligence Agency (CIA) Director Mike Pompeo has further put pressure on the US dollar. The White House continues to make unexpected moves to the market, and investors face uncertainty almost every day, while Trump's replacement of Secretary of State Tillerson has also intensified the pressure on the US dollar.

Once the news of Tillerson was exposed, the decline of the US dollar intensified, hitting a new low of 89.68 on the day, before rising slightly above the level before turning down again.

From a technical perspective, although the US dollar index had already reduced its initial decline late Tuesday, the pressure on the US dollar remains very heavy.

he US dollar index is not far from the multi-year low of 88.25 hit in mid February and is currently continuing to decline along the continuously declining 50 day moving average.