More weakness ahead for the USD in the short run at least – Scotiabank
|USD is mixed versus majors. As economists at Scotiabank note, the supportive yield story is fading.
Spreads turn mildly less supportive
“The USD is trading mixed versus the majors but retains a soft undertone overall, suggesting more weakness ahead for the USD in the short run at least.”
“The Dollar’s essential problem is that the supportive yield story that powered gains for much of the past month is a bit less compelling now as markets price other central banks (essentially, the BoE and ECB) a little more aggressively.”
“Month-end flows may provide the USD with some support over the session.”
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.