The US Dollar weakened by 1.8% (DXY basis) last week. Economists at MUFG Bank analyze Greenback’s outlook.
Looking set for further declines
We now believe the window for renewed US Dollar strength that we have been referring to may now have closed.
US data and global growth conditions will remain key for the scope for further Dollar weakness ahead.
The US Dollar remains vulnerable to further selling, certainly in the earlier part of this week both from a fundamental and technical perspective.