The consolidation of the Dollar extends a little further. Scotiabank economists analyze the outlook for the Dollar.
Strength in stocks means stronger headwinds for USD
A busy session is ahead for the Dollar. Key data releases could be subdued: Weekly claims have been rising and could be affected by seasonal factors, while industrial production could be weighed down by auto strikes. The dollar could come under slight pressure, at least as a result of the weak data.
The S&P is up more than 10% from its late October low, and seasonal trends suggest the jingle you’re hearing could be the “Santa Claus rally,” which typically gains momentum around this time after it stabilizes. risk appetite in the middle of the year. Strengthening stocks mean stronger headwinds for the USD.
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.