USD has generally weakened once peak rates are in – Scotiabank
|The US Dollar Index is stretching gains for a sixth consecutive session and is near to taking back 50% of the early July sell-off. Shaun Osborne, Chief FX Strategist at Scotiabank, analyzes Greenback’s outlook.
USD to weaken in H2
While the DXY rebound has extended a bit more than I expected the broader outlook for the USD remains somewhat challenging and I still rather look for the USD to weaken in H2.
The Fed is expected to hike on Wednesday and that move is generally seen as the last in the cycle. Policymakers will want to leave the door open to more tightening down the road but history shows markets are quite attuned to the top of the rate cycle when it comes and the USD has generally weakened once peak rates are in.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.