USD remains vulnerable to weaker data and greater market conviction around a Fed pivot – Scotiabank

FXStreet Insights Team FXStreet

The USD is stronger overall. Economists at Scotiabank analyze Greenback’s outlook.

JPY’s stability looks a little curious

The JPY’s stability looks a little curious considering its sensitivity to US yields recently but broader USD (DXY) gains are looking a bit stretched relative to fair value based on short-term spreads alone, suggesting the primary driver of USD appreciation is coming from geo-political/market risk influences.

The USD remains vulnerable to weaker data and greater market conviction around a Fed pivot but weakness is unlikely while risk aversion dominates market thinking.

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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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