The USD is trading mixed versus the majors. Economists at Scotiabank expect the greenback to sustain further losses ahead.

Strengthening downtrend continues to develop

“Passive equity hedge rebalancing signals for the USD over the past month appear to be USD-negative (ex-JPY) but positive over a Q1 perspective and may ultimately work against each other – but these flows could still buffet intraday trade to an extent.”

“USD losses are poised to extend further overall as markets focus on the maturing Fed policy cycle; the DXY’s failure to make deeper headway through the mid-103 area last week keeps the near-term technical tone negative as a strengthening downtrend continues to develop.”