- Analytics
- News and Tools
- Market News
- DXY: Scope for additional weakness to the mid/upper 103s – Scotiabank
DXY: Scope for additional weakness to the mid/upper 103s – Scotiabank
The USD is trading broadly lower to start the week. Economists at Scotiabank analyze the US Dollar Index (DXY) outlook.
Minor rallies will attract sellers
Generally lower US yields, greater conviction that the Fed tightening cycle is done and earlier pricing in of the Fed’s first rate cuts worked against the USD last week and will continue to weigh on USD sentiment for the foreseeable.
Last week saw a clear, technically bearish reversal in the DXY to complement the bearish price action we saw in early October. The top in the DXY rally coincides very closely with major, medium-term retracement resistance at 107.20.
DXY losses through the late October low at 105.40 add to the bearish technical tone and imply scope for additional weakness to the mid/upper 103s in the next few weeks.
The swift drop in the USD last week did leave a gap on the chart which, in theory, will have to be filled. But short-term USD gains in the index back to the 106.50 level are liable to attract renewed selling pressure as investors look to shift positioning on the USD.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
