TD Research adopts a neutral bias on the USD in the near-term.
"The growth scare remains topical and hence we see more balanced risks around the USD. That said, the transition from an inflation to a growth scare is a tad overdone in our view. The global economy has accumulated savings since the pandemic began that could shift consumption patterns," TD notes.
"Our trading book is empty at the moment, after we took profit in AUDNZD and CADJPY shorts, while being stopped-out of NOKSEK. But, show the growth scare fizzle, CAD, NZD, GBP and NOK look to be better positioned for performance in the fall," TD adds.