The US dollar has consolidated some of its gains and corrected. What’s next? The team at Danske sees further strength for the greenback:
Here is their view, courtesy of eFXdata:
Danske Research discusses the USD outlook and flags a scope for an extension in its recent tactical rally if the UST regains its upward move (i.e UST 10Y moves back above 3%).
“We continue to see USD support near term though with risks increasingly tilted towards three additional Fed hikes this year.
The refunding announcement from the US Treasury contained few surprises in terms of maturity distribution, but the sheer size of issuance ahead should continue to put upward pressure on US yields and support USD, everything else equal,” Danske argues
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