US Dollar may struggle to extend gains without new impulse – Scotiabank

Market news

7 February 2024

US Dollar may struggle to extend gains without new impulse – Scotiabank

The US Dollar (USD) is tracking a little lower overall on the session. Economists at Scotiabank analyze Greenback’s outlook.

USD gains overstate spread shift

The USD will need the support strong economic data and/or higher yields to continue advancing.

Short-term spreads have moved in the USD’s favour since mid-January but there are signs that USD gains are overstating the improvement in fundamentals.

Other factors, such as position adjustment, may be helping lift the USD tone – which suggests scope for additional USD is limited unless fresh USD-positive impulses develop

Mexican Peso to sell off a little on earlier-than-expected rate cut from Banxico – ING

AUD/USD stabilizes above 0.6500 as US Dollar edges down, China’s CPI in focus

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