The US Dollar surged higher post Nonfarm Payrolls. Economists at TD Securities analyze Greenback’s outlook.
Looking for USD downside in the medium-term
Our high-frequency fair value model shows that the USD is somewhat cheap and that the move lower from October highs may have gone a bit too far, too fast.
We are wary of the USD staying elevated at current levels in the near-term heading into US CPI and year-end.
Beyond that, we continue to look for USD downside in the medium-term with steep Fed cuts in H2 24.
Source: https://www.fxstreet.com/news/usd-to-stay-elevated-at-current-levels-in-the-near-term-heading-into-us-cpi-and-year-end-tds-202312111056