US dollar: Looks firmer amid upbeat economic data, vaccine rollout – JP Morgan

Dhwani Mehta FXStreet

Analysts at JP Morgan believe that the recent behavior in the US dollar and rates is largely technical and temporary, adding that the greenback is seen higher in the coming months.

Key quotes

“Citing solid domestic economic data.”

“The Federal Reserve should start formally talking about tapering communication in the April minutes.”

“An announcement of Biden's next circa $2 trillion in fiscal spending later this month.”

“US vaccination rollout acceleration to help maintain a US gap with the rest of the world.”

“Recommend remaining long USD vs. currencies where central banks are likely to remain dovish or growth-challenged, including euro, yen, Swiss franc and GBP.”

DXY at critical support opens prospects of significant upside correction

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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