What is the forecast for USD in the near-term?
Here is their view, courtesy of eFXdata:
MUFG Research discusses its latest bias on the USD, and turning tactically neutral.
“We are not turning USD bearish, but more that our USD bullish conviction has diminished and we have turned more neutral. As explained, there is some emerging evidence of better confidence more broadly and a less US-centric view on global recovery may result in less demand for the dollar over the coming weeks,” MUFG notes.
“The progression of time also brings us closer the possibility of hard evidence of the EU’s vaccination roll-out improving, which would lift confidence. We suspect EUR/USD will likely remain in a 1.1600-1.2000 range over the coming weeks, and possibly months,” MUFG adds.