USD consolidates in light trade, but heavy losses over the week take their toll, economists report Scotiabank.
BBDXY break suggests losses around 4%
Although overall slightly higher on the day, the US dollar is headed for a soft close on the week, a sign that momentum traders will likely try to exploit further in the days and weeks ahead.
Both the DXY and the broader BBDXY have broken below the lows seen earlier in the year. After a period of slack and trading in low conviction ranges, a more dynamic phase of market movement could be about to unfold.
The DXY break suggests that USD losses could extend to 2-3% or perhaps as much as 5% in the coming months.. From a technical point of view, the BBDXY suggests losses of around 4%.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
