Rally still looks prone to some technical retrenchment – Scotiabank

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USD firms modestly. Economists at Scotiabank analyze Greenback’s outlook.

Soft data risks for the US may be rising

The USD is trading firmer overall but the ‘market-weighted’ DXY is trading off its earlier highs ahead of the North American session and effectively continues to consolidate within the October trading range.

Soft data risks for the US may be rising as interest rates start to bite on the USD economy and the broader USD rally still looks prone to some technical retrenchment after the DXY’s slide back from the low 107 medium-term resistance point at the start of the month.