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The US Dollar (USD) trades firmer but scope for gains is limited, analysts at Scotiabank say.
Certainly, in the short run markets are unlikely to take any large positions on the USD ahead of Chairman Powell’s comments on Wednesday.
More broadly, the overall USD trend continues to look a little frayed around the edges.
This week’s risk events could support moderate USD gains in the short run but the general tone in the USD since its mid-February peak has been soft and weakness risks extending below DXY support around 103.75.
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