The US dollar (USD) weakened yesterday, leaving the dollar index (DXY) in a new minimum of the cycle briefly, while Canada enjoyed its national holiday. But the USD has risen a little more today, since the markets are prepared for the FEE of US data flood and adjust the positioning before the long weekend in the US, they point out the main strategists of FX of Scotiabank, Shaun Osborne and Eric Theoret.
The USD is consolidated before the US NFP and July 4
“A significant recovery in the USD seems unlikely at this time. The fall of the USD from the ‘Liberation Day’ has been implacable, but the USD yield until now this year in general has been extremely poor and, with June already in the past, it is official. With a loss of just under 11% in the DXY since January 1, this is the worst high streak of the USD in the first six months of the year in the modern era. Only operators have a negative vision of the USD prognosis from a short -term macro point of view. ”
“This trend reflects investors reconsidering their wallets called in USD and FX coverage proportions due to concerns about the direction of US commercial and fiscal policy, as well as possible restrictions on the independence of the Fed – a constellation of significant negative potential Provided protests from US officials suggests that the USD weakening trend is receiving tacit approval – surprising, perhaps, since efforts to reconfigure global trade with tariffs are only seeing limited progress at this time. ”
“We continue thinking that the DXY will fall to the 90/95 range in the coming months. Today’s employment data is expected 110,000 jobs, just below the average of three months of 135,000. “
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.
