DXY looks poised to retest its February high around 105.00 – Scotiabank
|The powerful USD rally that drove markets on Thursday has extended further. Economists at Scotiabank analyze Dollar’s outlook.
There appears to be very little in the way of some additional USD progress
Despite the focus on central bank prospects, broader Dollar gains are moving a little ahead of shifts in interest rates. US 2Y yields are around 3 bps lower on the session today which is bit more than other markets (ex UK). Still, investors have warmed to the goldilocks economic picture the Fed outlined earlier this week and there appears to be very little in the way of some additional USD progress at least at this point.
Rather than heading towards a 102.00 handle, the DXY now looks poised to retest its February high around 105.00. Rates or spreads may need to shift more significantly in the USD’s favour for gains to extend much beyond there, however.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.