Mild USD rebound seen since late last week may be running out of momentum – Scotiabank

The USD is trading mixed against the majors. Economists at Scotiabank discuss the greenback outlook.

DXY needs to break 102.60/65 short-term resistance to extend its recovery

Technical patterns suggest the mild USD rebound seen since late last week may be running out of momentum, however, and the broader tone of the DXY remains negative on the charts. 

The DXY is facing firm, short-term resistance around 102.60/65 which it will have to breach to extend its recovery from last week’s low. Weakness below 102.20 intraday will point to renewed softness. 

Soft stocks and marginally more supportive spreads may help backstop USD softness on the day.