The USD stabilizes after the heavy losses caused by the CPI. Shaun Osborne, chief currency strategist at Scotiabank, analyzes the outlook for the dollar.
Further losses appear likely in the short and medium term
The dollar’s sharp across-the-board decline on Tuesday adds to growing evidence that the dollar’s recovery in the second half of the year is reversing. A good part of that rise has already been recovered, but more losses seem likely to me in the short and medium term.
The fundamentals are less favorable for the USD and the short, medium and long term price signals are leaning towards a bearish trend.
A weak DXY close in November will seal a long-term (monthly) reversal signal on the charts.
Markets have been in “USD dip buying” mode since mid-year; From here we will move on to “selling USD recoveries”.
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.
