USD recent sharp rebound catching the market by surprise - BTMU

Analysts at Bank of Tokyo Mitsubishi explained that the US dollar’s recent sharp rebound has caught many participants by surprise.

Key Quotes:

"The run up to the US Presidential election was expected to be a challenging period for the US dollar. However, improving US cyclical momentum and building Fed rate hike expectations are providing strong tailwinds for the US dollar heading into year end."

"As it moves closer to the previous peaks it could challenge views built up during this year that the US dollar’s cyclical up trend was exhausted. Long positioning is lighter than at the previous peaks creating a more favourable environment for the US dollar to build on gains."