Dollar bounces a bit today
The dollar is doing a bit better today -- particularly against the commodity currencies -- but Westpac doesn't think the slump in the dollar is over.
From a note today:
USD breakdown likely to continue amid the Fed's stimulus commitment, virus-thwarted rebound prospects and an ongoing positive reappraisal of EUR's long-term prospects following last week's EU fiscal burden sharing accord. Short USD positioning approaching the bottom percentile of the last 16 years but that is likely to endure while yield spreads remain unappealing.
