By eFXdata — Dec 06 - 09:25 AM
TD Research discusses the USD bias into year-end.
"The USD stumbled again last week, reflecting the easing of FCI that accompanies the scaling down of Fed rate hikes. The feedback loop has seen a mix of a reduction of global tail risks, easing global inflation surprises, and hopes of peak central bank hawkishness all marinating to ease FCI and weaken the USD," TD notes.
"A shift in momentum signals could keep the USD on the back foot in the very short-term. Yet, USD downside looks contained ahead of November CPI and the Fed meeting. We like fading the rally in GBPUSD and see USDJPY retesting 140 before year-end.
We also see dovish risks for BoC this week and like USDNOK topside, especially if risk sentiment peaks," TD adds.
TD Bank Research/Market Commentary