USD poised to soften further as markets focus on Fed easing risk – Scotiabank

The USD retains a soft undertone after closing out Friday on the low after a poor week. Economists at Scotiabank analyze Greenback’s outlook.

Slower US growth and lower US yields will undercut the appeal of the USD

Sentiment on the USD is clearly changing as market conviction that the Fed tightening cycle is ended grows and investors start to focus on when the Fed will start to relax its policy settings.

Slower US growth and lower US yields will undercut the appeal of the USD in the coming months.