USD loses ground as risk appetite rebounds. But the greenback is unlikely to fall significantly, in the view of economists at Scotiabank.

Investors are embracing risk and feeling a bit more confident

“Improving risk appetite and focus on peak Fed policy represent headwinds for the USD broadly; intraday patterns reflect this, with the USD down against all its major currency peers on the session.”

“Losses for the big Dollar seem unlikely to extend significantly until investors get a sense of the Fed policy outlook at next week’s FOMC decision, however.”