USD near-term outlook range bound – Scotiabank

FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, remains of the view that USD might remain range-bound in the near term, but drift higher eventually.

Key Quotes

“Entering the week the USD is generally stronger than Friday’s close, but within its recent range as the U.S. 10‐year yield is just under 2% and the 2‐year is at 0.58%, providing a fairly cautious outlook for both the Fed’s interest rate hiking cycle and the growth and inflation outlooks.”

“we expect that the USD’s near‐term outlook is somewhat range bound; but that eventually the USD will resume an upward trend. For most currencies the bulk of the weakness against the USD has already occurred, but the trend will continue to be lower”

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