USD INDEX: CORRECTIVE GAINS POISED TO EXTEND TOWARDS 104 – SCOTIABANK
The US Dollar is stronger on the session. Economists at Scotiabank analyze Greenback’s outlook.
The US Dollar is stronger on the session. Economists at Scotiabank analyze Greenback’s outlook.
Bull technical signals pick up
A further correction in the USD’s hefty Q4 sell-off has been looking a strong likelihood; price action around the late year rebound in the USD generally suggested a major low/reversal on the charts; seasonal trends are USD positive in Q1 – and especially so in January – while markets may have gotten over their skis a little on Fed pricing, although swaps are showing little change this morning, with 18-19 bps of cuts priced in for the March FOMC still.
Technically, corrective gains in the DXY are poised to extend towards 104 (103.87 is the 50% Fibonacci retracement of the Q4 decline in the index) and might reach 104.63 (61.8% retracement resistance).
A further correction in the USD’s hefty Q4 sell-off has been looking a strong likelihood; price action around the late year rebound in the USD generally suggested a major low/reversal on the charts; seasonal trends are USD positive in Q1 – and especially so in January – while markets may have gotten over their skis a little on Fed pricing, although swaps are showing little change this morning, with 18-19 bps of cuts priced in for the March FOMC still.
Technically, corrective gains in the DXY are poised to extend towards 104 (103.87 is the 50% Fibonacci retracement of the Q4 decline in the index) and might reach 104.63 (61.8% retracement resistance).
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