USD Index: Scope for a near term rebound – Standard Chartered

Will the US Dollar continue to weaken? Economists at Standard Chartered expect the USD to take a pause, or even potentially stage a near term rebound, over the next few weeks.

Raising the odds of a near term bounce

“A still-strong US job market and retail sales continue to point to underlying economic strength. Fed policymakers have also consistently highlighted the need to keep hiking rates for now. These argue USD strength is not yet complete.”

“From a technical perspective, USD looks oversold, and EUR & GBP (key DXY constituents) look overbought. This raises the odds of near term consolidation and, potentially, a bounce higher should Nov labour market and inflation data surprise to the upside.”

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