The dollar failed to sustain a significant recovery despite strong US retail sales and the fresh rally in 10-year yields. TD Securities economists analyze the outlook for the dollar.
BOC risks tilt toward hawkish stance
We remain bearish regarding the Dollar, since, according to our model of monitoring the main macroeconomic factors, it seems stressed.
We continue to anticipate a USD correction in the coming weeks. This would require a catalyst, either in the form of declining geopolitical risks or a slowdown in US data.
We remain bullish on high-quality carry currencies (MXN, BRL, INR). We also like the CAD, where the BOC has the potential to outperform its peers given the momentum in core inflation. We also favor their Chinese counterparts, such as the AUD and NZD, due to the continued easing of monetary policy and signs that activity data has bottomed out.
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.
