Economists at Westpac expect the US Dollar Index (DXY) to trade at the upper boundary of the 93.50-95 range in the short-term. Beyond that, DXY should continue the bear trend next year.
Key quotes
“DXY should continue to trade on the higher side of recent ranges (93.5-95.0) while new COVID-19 cases in Europe surge, activity restrictions tighten, and Brexit and US fiscal stimulus prospects remain uncertain.
“Blue wave election expectations and associated hopes for a larger US fiscal deal early 2021 likely prove more decisive for the USD multi-week, sustaining the medium-term bear trend.”
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