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Within the context of our medium-term dollar bearish outlook, we had been anticipating a countertrend dollar bounce.
It was to be fueled by short-covering as the adverse developments had been discounted, rate differentials were moving in the US favor, and the technical indicators were stretched.
However, it looked dicey last week as sterling and the Canadian dollar made new highs since the Q2 '18. Yet, the greenback ended the week on a firm note, and those corrective pressures are likely to continue into next week.