The currency markets start the week calmly. Is the dollar recovery running out of steam? In the view of ING economists, the USD recovery in February is a correction.
The Fed’s aggressive February reassessment may have gone too far
“Friday’s price action developments suggest that the Fed’s aggressive repricing in February may have been enough for now. US yields on Friday reversed from early European session highs and the DXY fell rapidly from a high of 104.60. On Friday, we had said that this greenback rally could extend as far as 105.00 or, with external risk, as far as 106.50. However, price developments on Friday suggest that those levels could be beyond our range.”
“In general, our baseline assumption is that the dollar recovery in February is a correctionbut this week will determine if it runs out or if it still has a little more to go.”
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.
