USD: Caution In The Near-Term; Overbought But Still Faces Renewed Upside Coming Weeks – Credit Agricole

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What is the outlook for the USD in the near-term?

Here is their view, courtesy of eFXdata:

Credit Agricole CIB Research adopts a cautious bias on the USD in the near-term.

“The USD has been on the defensive so far this week, regardless of better than expected economic data releases such as Monday’s Services ISM. As such, the most recent price action suggests the USD is trading close to overbought territory, an assessment that is fully in line with our FX positioning data,” CACIB notes.

While it can still not be excluded, that the currency faces renewed upside in the weeks to come, positioning as it stands argues in favour of short-term caution,” CACIB adds.

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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.