The US Dollar has been on a recovery path, not responding to upbeat data. What’s next? Here is the view from Credit Agricole:
Here is their view, courtesy of eFXdata:
Credit Agricole Research discusses the USD outlook and notes that since Friday’s better than expected US labor data, the USD was unable to continue appreciating.
“While such price action could be indicative for the greenback being close to overbought territory our FX positioning gauge is confirming such an assessment.
In fact, speculative oriented investors seem to have built the largest USD long position in several quarters.
In an environment, which stays characterized by intact uncertainty as when it comes to US politics, we believe the risk for position squaring-related USD downside stays high,†CACIB argues.
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