USD correction could continue today – Commerzbank

On Monday, the US Dollar (USD) ended the day in the red. Commerzbank economists analyze the outlook for the dollar.

USD running out of steam at current levels

The Dollar is running out of steam at current levels. But this shouldn't be a surprise. At some point, every last market participant will have internalized the officials' statements and formed their own opinion. And to be honest, not much has changed since last week, at least as far as the USD is concerned. Rather, data is likely to remain the determinant of the Fed's direction.

Friday's PCE deflator will undoubtedly be the most important indicator for a valuation. After all, Given the strength of the US economy, inflation will ultimately determine when and how quickly the Fed cuts interest rates. However, today's flurry of second- and third-level data could already spark some movement. If the trend of recent weeks continues, in which the data tended to be disappointing and doubts began to emerge about the history of US growth, the correction of the Dollar could continue today.

Source: Fx Street

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