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IT IS HARD TO EXCLUDE THE RISK OF THE USD STAYING FIRM FOR A BIT LONGER – SCOTIABANK

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The US Dollar (USD) is stronger versus all G10 currencies this week although that strength has partially reversed. Economists at Scotiabank analyze Greenback’s outlook.

Key support for the DXY at 103.90 may be out of reach today

The USD has given back a lot of its CPI-driven gains over the balance of this week, leaving the broader trend higher at some risk of stumbling, at least according to the charts. 

Key support for the DXY sits at 103.90 but that may be out of reach today. 

And while the DXY still looks stretched from a short-term valuation perspective, it’s hard to exclude the risk of the USD staying firm for a bit longer at this point – certainly while US yields remain relatively elevated.


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