TD on the US dollar this week
TD FX Strategy Research discusses the FX market outlook into the US Thanksgiving Holiday this week expecting thin liquidity and increased two-way risks to characterize the week ahead, given the shortened trading.
"There is little US data flow and the discussions around the tax plan will probably shift to the back burner, as the Senate winds down for the holiday.
....Even so, the DXY has broken the trend line drawn off the Sep low and continues to bump up against the 50dma near 93.51. A break of that opens up a test of the 50% fib level from the recent lows around 93. This technical backdrop comes against a dollar that remains rich to macro drivers, which increases the risks of further downside," TD argues.
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