USD has corrected weaker and could extend further over the very short-term, economists at MUFG Bank report.
Scope for Dollar strength to remerge
This USD weakness could extend further over the short-term but we remain sceptical about this being a sustained turnaround.
The move looks technical and month-end flows could be influencing price action.
Yields remain supportive for the Dollar and the ‘higher for longer”’ narrative will only be questioned once the US data turns weaker
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