This month in the G10 currency group, the Dollar is only stronger against the Yen. The economists of ENG analyze the outlook for the USD.
DXY is likely to drop to the 102.00 area
In the short term, the Dollar could continue to weaken against most currencies, except the Japanese Yen, as the Bank of Japan remains decidedly dovish. In this case, yen-funded carry trades will remain popular.
Today we will know the inflation expectations of the University of Michigan. This data tends to move markets, and any significant decline could push the dollar lower. On the other hand, we have three speeches from members of the Fed, generally hardliners.
We think the put-money-to-work mood is likely to dominate and, barring a surprise to the upside in US inflation expectations, the DXY can probably approach the 102.00 zone, if not below.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
