The dollar goes down, the broader feeling weakens – Scotiabank

The US dollar (USD) is quoting slightly weaker in the session. The trade is relatively quiet to the naked eye, with the north -year -old holiday calendar (the fallen day next Monday) after Canada’s free day yesterday, which could be affecting the participation, says Shaun Osborne, Head of Strategy of FX of Scotiabank.

The USD quotes slightly down, the recent rebound can be reaching its maximum point

“The AU is low yield after the RBA made an ‘dovish’ rate cut – a 25 basic points cut in the 3.85% cash rate and a reduction of the growth and inflation forecasts that point to more flexibility ahead for a central bank that has been slow reference to historical minimums above;

“The CNY is slightly weaker in the session. The high beta currencies are surpassing, with the MXN and Tsar leading the intradic profits against USD. Asian and European actions are firmer, but future US actions are downward in the session in the midst of concerns that the recent rebound can be losing strength. Commercial uncertainty remains high and, although the reduction of the qualification Sovereign Credit of the United States last week could hardly have been a surprise for the markets – and had little obvious impact on the already weak trend of US debt in recent weeks – investors cannot be complacent to signs that the economic impulse of the United States may be decelerated in the midst of the repercussions of the tariff policy of President Trump.

“The fixing of risk reversion prices continues to reflect a continuous strengthening in the bearish feeling to the dollar, with the premium for EUR purchase options at 3 months on the sale options of EUR of similar Delta reaching 1%, the highest level since 2009 (outside the volatility of the pandemic market). In fact, the widest bassist in the DXY remains intact, with the index, with the index, with the index, with the index, the index is maintained last week satisfying the corrective pressure, without pointing out a reversal.