The recovery in the USD has a bit more to go – Scotiabank

The US Dollar (USD) is narrowly mixed in quiet trade. Economists at Scotiabank analyze Greenback’s outlook.

Potential for the USD to recover more of its Q4 decline

The USD still appears to be consolidating after its early January rebound.

The recovery in the USD has a bit more to go as US short-term yields reprice March FOMC risks but markets need a catalyst to drive more decisive movement.

Recall that the USD may also find support from bullish seasonal trends while longer-term technical signals suggest potential for the USD to recover more of its Q4 decline.