USD Index: Door pretty wide open for some deeper consolidation ahead – Scotiabank
|The USD remains firm. Economists at Scotiabank analyze Greenback’s outlook.
The high for longer narrative is USD supportive
The DXY looks poised to lock in a tenth, consecutive weekly gain. US yields popped to new cycle highs following the Fed decision Wednesday and are maintaining gains through their former 2023 highs across the curve.
The high for longer narrative that has emerged after the FOMC decision is USD supportive but even with yields above recent highs, the USD’s broader valuation looks a little overdone; stretched valuation, even in the short run, plus the extended USD run higher over the past 2 1/2 months leaves the door pretty wide open for some deeper USD consolidation ahead (particularly considering strike, government shutdown risks).
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.