Tactical USD upside for now – CIBC

Market news

7 August 2023

Tactical USD upside for now – CIBC

Economists at CIBC Capital Markets explain why near-term USD rallies should be faded over the long-term.

The degree of dissonance between the Fed and the market remains stark

Greater dissonance between the Federal Reserve and the market alongside liquidity risks portend near-term USD strength.

USD sellers should still look at rallies to get active over the medium-term.

DXY – Q3 2023: 103.23 | Q4 2023: 100.42

See: USD vulnerable on expectations that the Fed will not need to raise rates further this year – MUFG

EUR/USD Price Analysis: Next target emerges at 1.1150

USD/MXN to see an extended rebound towards 17.80 on a break past 17.40 – SocGen

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