US Dollar rebound has more room to go until data worsens – MUFG
Source Fxstreet
USD rebound is unfolding given the richness of US rates curve. Economists at MUFG Bank analyze Greenack’s outlook.
EUR/USD could move back down to around the 1.06/1.07 area in February
While inflation is falling quite quickly now for the FOMC to cut we will need to see some clearer evidence of a deteriorating labour market that would prompt increased fears of recession. That of course may well come in either the February or March payrolls reports but if not in February we may well see a full retracement of the EUR/USD rally in November/December, taking spot back down to around the 1.06/1.07 area.
The Dollar sell-off into year-end looked overdone and hence there remains scope for further USD strength, especially on days like Tuesday when we see bigger jumps in yields.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
The launch of new tokens following headline-making events is not new in the crypto market.
Solana (SOL) price trades in green, above $242 at the time of writing on Monday, after breaking out of a parallel channel last week with bulls aiming for record highs.
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) hover around key levels after recovering by nearly 4%, 7%, and 6%, respectively, last week.
Gold (XAU/USD) kicks off the new week on a softer note, though it manages to reverse an Asian session dip to the $3,627-3,626 area and currently trades near the top end of a one-week-old trading range.
Major currency pairs trade in familiar ranges to start the week as investors gear up for key macroeconomic data releases and central bank meetings.
Related Instrument
