USD regains a little ground in quiet trade. Shaun Osborne, Chief FX Strategist at Scotiabank, analyzes the greenback outlook.
USD gains may extend a little from here
It’s a light week for US data (although there is plenty of Fedspeak in the next few days) and today is likely to be quiet, given the Juneteenth holiday in the US.
USD gains may extend a little from here as short-term oversold conditions work off but the trend is soft and the USD is likely to remain sensitive to data – especially negative data surprises – in the short run.
I think the greenback remains prone to weakness in the longer run as markets start to consider the top of the US rate cycle.
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