Short-run risks suggest scope for the USD sell-off to extend – MUFG

USD has corrected weaker and could extend further over the very short-term, economists at MUFG Bank report.

Scope for Dollar strength to remerge

This USD weakness could extend further over the short-term but we remain sceptical about this being a sustained turnaround.

The move looks technical and month-end flows could be influencing price action. 

Yields remain supportive for the Dollar and the ‘higher for longer”’ narrative will only be questioned once the US data turns weaker.

See: USD unlikely to soften by more than 0.5% despite US shutdown averted – TDS