The USD correction could continue today – Commerzbank

On Monday, the US Dollar (USD) ended the day in the red for once. Economists at Commerzbank analyze Greenback’s outlook.

The USD is running out of steam at current levels

The USD is running out of steam at current levels. But this should not come as a surprise. At some point, even the last market participant will have internalized the officials' statements and formed their own opinion. And to be honest, not much has changed since last week, at least as far as the USD is concerned. Rather, the data will likely continue to be the determining factor in the Fed's direction.

Friday's PCE deflator will certainly be the most important indicator for an assessment. After all, given the strength of the US economy, inflation will ultimately determine when and how quickly the Fed will cut interest rates. However, today's wave of second and third tier data could already cause some movement. If the trend of the last few weeks continues, when the data tended to be disappointing and doubts about the US growth story began to surface, the USD correction could continue today.