The risk of more strength in the USD is high – Scotiabank

FXStreet Insights Team FXStreet

The Dollar is flat as the relentless rally takes a breather. Economists at Scotiabank analyze Greenback’s outlook.

Markets prone to a USD downswing in the event of adverse fundamental news or even a US government shutdown

The risk of more, at least short-term strength in the USD is high, given momentum, but there is a risk that positioning and sentiment are shifting too far, too quickly, leaving markets prone to a USD downswing in the event of adverse fundamental news – a weak data print or two – or even a US government shutdown.

Short term price signals suggest a brief pause perhaps in the broader USD rise.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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