The U.S. dollar continues to be the currency of choice for many investors. What is the near-term bias for the greenback?
Here is their view, courtesy of eFXdata:
TD Research maintains a bullish bias on the USD over the coming weeks.
“Our baseline assumes nothing that resembles a V, even if some data starts to print better than expected. Risk assets liked Friday’s NFP report, but we think markets have drawn the wrong signals from the easing of lockdowns, and some early data reads,” TD notes.
“The result is to expect a pickup in the USD, especially as we think the Fed will reduce the oxygen flow to the NIRP story. Fed officials this week will likely downplay the immediate need for NIRP in favor of other tools like YCC. The bulk of these factors should work against risk sentiment, leaving overvalued risk assets vulnerable,” TD adds.
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