Markets may be turning a bit less constructive on the USD – Scotiabank
|The US Dollar (USD) is narrowly mixed in quiet trading. Economists at Scotiabank analyze Greenback’s outlook.
USD needs more support from higher yields and/or stronger data to advance
The USD is trading firm on the day and week and underlying momentum signals are leaning bullish but beyond that, there are some softer technical signals creeping into longer-term price action in the DXY, suggesting markets may be turning a bit less constructive on the USD overall after its early year rally.
At the very least, the USD needs more support from higher yields and/or stronger data to advance from here – and solid US Treasury auctions this week suggest investors are happy to participate with the 10Y yield nearing recent highs around 4.20%.
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