OCBC: USD Pause Not a Reversal, Hawkish Fed Risks Remain
OCBC strategists say the US dollar rally has paused as global risk appetite improves, but sticky inflation and steady labor data keep hawkish Fed risks alive, suggesting the breather is not a reversal.
DXY
OCBC FX strategists Sim Moh Siong and Christopher Wong note that the US dollar rally has taken a breather amid improving global risk appetite. However, they caution that this is a pause rather than a reversal.
The strategists point to persistent US inflation and steady labor market data as factors that maintain hawkish Federal Reserve risks. These conditions suggest the dollar's underlying strength remains intact despite the temporary pullback.
Source: FXStreet Forex News