Credit Agricole CIB discusses the USD outlook and notes that all eyes today will remain on the US earnings season.
"Ahead today 16 S&P 500 listed companies will release quarterly earnings. On balance, we expect another constructive earnings season to help stabilizing risk sentiment even further.
From that angle additional USD upside cannot be excluded, especially against low yielders such as CHF and JPY. At the same time elevated long positioning continues to keep corrective downside risks intact.
However, sentiment appears to remain in favour of buying such dips," CACIB argues.