The Dollar is now close to oversold levels and a rebound could be overdue – SocGen
The 1.8% decline in the US Dollar Index (DXY) last week was the largest since the second week of July. Economists at Société Générale analyze Greenback’s outlook.
DXY at risk of a deeper retracement towards 102.55
A close below the 200-DMA (103.62) put the DXY at risk of a deeper retracement towards 102.55.
In the most bearish tactical case, a decline towards 100 could follow if real yields keep falling towards 2% and nominal 10-year UST breaks below 4.36%/4.33%. However, the Dollar is now close to oversold levels and a rebound could be overdue.
The question is whether a rebound in Oil prices (Saudi/ OPEC+ production cut extension) would negate confidence of a soft landing in the US economy and speculation of a first rate cut in 1H24 which explains Dollar profit taking.
Reprinted from FXStreet_id，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.