USD to remain firm in near term but additional gains will need the support of higher US yields – Scotiabank
|The firm US Dollar (USD) is consolidating its recent gains. Economists at Scotiabank analyze Greenback’s outlook.
Macro drivers are positive for the USD
The USD looks poised to remain firm in the near term but additional gains will need the support of higher US yields (10Y yields above the January highs around 4.20%, for example).
Macro drivers are positive for the USD. Economic Surprise data show US economic reports are running quite strongly ahead of expectations since the middle of January – more strongly than the Eurozone or Canada, for example. Stronger data support the high (but perhaps not higher) for longer outlook for US rates, at least.
The USD may hold close to current levels ahead of the US CPI data next week which will provide a little more direction for US yields in the short run.
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.