US dollar strategy from TD
TD Research maintains a bullish USD bias over the coming weeks. "One of the most action-packed weeks of the final stage of the year should reinforce a tactical bullish setup for the USD. The USD has a few tailwinds that should boost it through the weeks ahead, ranging from stretched valuations, tapering, liquidity issues, de-risking on the global front-end rate selloff (and associated curve flattening), and very bullish seasonal patterns," TD notes.
"For the week ahead, the Fed and US data should benefit the broad USD. Despite the recent pullback, our dashboard still implies more EUR weakness, underscoring the prospects of a temporary push below 1.15. We would also look to fade any RBA-inspired AUD strength and expect the BoE outcome will reverse some of the recent GBP strength," TD adds.
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