BNY’s Yu: Stretched USD positioning may cap gains ahead of FOMC
BNY strategist Geoff Yu notes strong recent dollar demand is meeting stretched positioning, potentially limiting further upside as the Fed meeting approaches.
DXY
The US Dollar enters the Federal Open Market Committee meeting with robust demand, driven by cross-border buying and late-July spot flows, according to BNY’s Geoff Yu. However, that demand may struggle to push the currency higher.
Yu highlights that USD positioning has become stretched, a factor that could cap gains even as near-term demand persists. The remarks suggest a more cautious outlook for the dollar in the very short term.
Source: FXStreet Forex News