MUFG’s Derek Halpenny and Lee Hardman note that weaker United States (US) data and lower short-term Treasury yields are undermining US Dollar (USD) support, even as the US Dollar Index (DXY) holds above its 200-day moving average near 99.200. They highlight softer retail sales, Nonfarm Payrolls (NFP) and Consumer Price Index (CPI), reduced Federal Reserve (Fed) hike pricing, and expect the Dollar to weaken modestly heading into next year.
Softer data weigh on Dollar outlook
“The steeping of the US yield curve driven by the move lower for short-term US yields is creating an unfavourable backdrop for US dollar performance although it has not…
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