In the opinion of analysts at BBH, the greenback is expected to gather further traction in the next periods.
Key Quotes
“One of technical factor that emerged last week was the beginning of the correction of the dollar’s losses”.
“This is most evident the in the Dollar Index and its biggest constituent, the euro”.
“The first thing to note is that the Dollar Index and euro have already retraced more than 61.8% of the move following the FOMC meeting (found near 96.10 and $1.1165 respectively”.
“The overshoot has been minor, meaning that both the Dollar Index and the euro are at potential turning points. However, the technical indicators point to a further dollar recovery”.
(Market News Provided by FXstreet)