- 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.
For further details see:
Upside Dollar Correction Not Complete