DXY: Significant move lower requires major shift in longer term rate differentials against USD

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DXY: Significant move lower requires major shift in longer term rate differentials against USD
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USD losses extend for a second day. Economists at Scotiabank analyze Greenback’s outlook. Technical signals turn negative We have been due – or overdu

We have been due – or overdue – a correction on the strong Dollar trend and while price action suggests that may well be happening, USD losses could simply reflect temporary month and quarter-end flows.

As things stand, the DXY is just about clinging on to an 11th, consecutive weekly gain but well off its high. A low close on the week would signal the risk of more USD losses from a technical point of view at least.Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.

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