Scotiabank: Risk Aversion Supports USD but DXY Faces Downside Risks
Scotiabank analysts note the US Dollar is broadly firmer on risk aversion, but warn of downside risks for the DXY index.
DXY
Scotiabank strategists Shaun Osborne and Eric Theoret observe that the US Dollar (USD) is broadly stronger as risk-off sentiment dominates markets. Equities are weaker and oil prices are under pressure, supporting the safe-haven dollar.
However, the analysts note that the DXY index faces downside risks despite the current strength. The risk-off support may be temporary, and underlying factors could shift the dollar's trajectory.
Source: FXStreet Forex News