The USD continues to trend higher following a hawkish FOMC shift, putting pressure on peers like the CAD and EUR. Technicals indicate the dollar is overbought, but momentum remains firmly positive.
Key Takeaways
- 1.The USD remains strong following the FOMC meeting as markets aggressively reprice the policy outlook.
- 2.CAD prospects have deteriorated significantly due to higher US front-end rates and wider US/Canada yield spreads.
- 3.Technical indicators suggest the current USD advance is stretched and may encounter short-term resistance.
Table of Contents
- Overview
- Markets Idle, Awaiting FOMC
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Authors
Shaun OsborneEric Theoret
Securities
DXY
Themes
FX Overbought ConditionsHawkish Fed Policy
Regions
GlobalUnited StatesCanadaJapan