The US Dollar (USD) is narrowly mixed for the most part against the major currencies, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Technical signals lean bearish for DXY
“FX markets give the impression of limping into the weekend, with narrow ranges overall contrasting with the bigger moves and higher volatility that characterized early week trading. Tariffs have moved to the background, for now. “
“The GBP is a minor outperformer among the G10 currencies on the session as investors recalibrate thinking after yesterday’s BoE decision brought some mixed messaging on the policy outlook. The JPY has given back a lot of yesterday’s gains as US yield nudge marginally higher; it is underperforming alongside the CHF even though risk appetite looks a little fragile globally.”
“Overall, the USD’s sharp reversal from its Monday peak leaves the DXY trading down sharply on the week. Net losses are a significant technical negative on the weekly charts which would—ordinarily, if markets really have switched off the tariff driver for FX—point to more losses ahead and strengthen the technical ceiling on the index in the 110 area. A push below 107 in the week ahead would indicate more weakness in store for the USD overall.”
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