USD is prone to a sizeable correction in the long run – Scotiabank
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
The USD is trading generally lower as the Q4 consolidation in the 2022 rally extends. Economists at Scotiabank believe that the greenback is set to suffer a sizeable corerction.
“Broadly, we think the USD is poised to remain relatively firm in the short run but we do think the long run USD rally is looking over-extended and prone to a sizeable correction.”
“Seasonal pressures (USD-negative) are working as expected and should exert a little more negative influence on the broader trend in the next few weeks, assuming year-end liquidity pressures remain contained.”
“A sharper fall in the USD may have to wait until investors are more convinced the Fed tightening cycle is complete.”
[/s2If]
Join Our Telegram Group
