The USD is trading mixed to start the week after closing out Friday soft. Economists at Scotiabank analyze Dollar’s outlook.
10Y yields seen breaking decisively under 4%
Some consolidation in rates and the USD may be in order here after the sharp moves seen recently and with the holidays ahead. But the bottom line is that Fed Chairman Powell failed to push back on market pricing last week when most people expected him to and the Fed can’t now unring that particular bell.
US yields look poised to remain soft, with 10Y yields breaking decisively under 4% and that will add to pressure on the USD in the weeks ahead.
Source: https://www.fxstreet.com/news/us-yields-look-poised-to-remain-soft-adding-to-pressure-on-the-usd-in-the-weeks-ahead-scotiabank-202312181404