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Dollar edges higher but rebound may stall near 100, Scotiabank says
Scotiabank cited event risk around Iran sanctions, US PCE data, and Fed Chair Warsh’s Jackson Hole speech, with bearish technical trends capping any DXY surge near 100.
Scotiabank strategists Shaun Osborne and Eric Theoret said the US dollar is modestly stronger as markets begin the week cautiously, with equities leaning defensive and Treasuries firmer, according to FXStreet.
They pointed to multiple near-term catalysts that could support moderate USD gains, including sanctions on Iran, the US PCE Price Index release, and Fed Chair Warsh’s Jackson Hole speech, noting that positioning has been pared.
Even with the firmer dollar, they warned bearish technical trends could limit any rebound in the US Dollar Index, with FXStreet noting the outlook is for the DXY recovery to stall around the 100 area.
FXStreet also reported that GBP/USD remains offered after losing part of its recovery, while EUR/USD is slightly offered toward the 1.1660 area, and gold is steady above $4,600 per troy ounce despite a slightly stronger dollar and softer Treasury yields.
Latest closeGold $4,432.00 ▲1.6%|EUR/USD 1.157 ▲0.4%|GBP/USD 1.354 ▲0.3%