It is hard to exclude the risk of the USD staying firm for a bit longer – Scotiabank
|The US Dollar (USD) is stronger versus all G10 currencies this week although that strength has partially reversed. Economists at Scotiabank analyze Greenback’s outlook.
Key support for the DXY at 103.90 may be out of reach today
The USD has given back a lot of its CPI-driven gains over the balance of this week, leaving the broader trend higher at some risk of stumbling, at least according to the charts.
Key support for the DXY sits at 103.90 but that may be out of reach today.
And while the DXY still looks stretched from a short-term valuation perspective, it’s hard to exclude the risk of the USD staying firm for a bit longer at this point – certainly while US yields remain relatively elevated.
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.