USD gains will be vulnerable to weaker than expected economic outcomes – Scotiabank

USD regains momentum in quiet trade. Shaun Osborne, Chief FX Strategist at Scotiabank, analyzes the Grenback’s outlook. 

Gains in the US Dollar Index look hugely overextended

A 12th successive net weekly gain for the DXY – which positive price action so far this week suggests is possible – looks hugely overextended to me still, however.

There is a lot of US data ahead this week, including today’s ISM Manufacturing data. USD gains will be vulnerable to weaker-than-expected economic outcomes.

See: DXY to stay bid in the 106-107 range this week – ING