The window for a USD rebound remains open over the next few weeks – Scotiabank

USD gains broadly in quiet trade. Economists at Scotiabank analyze Dollar’s outlook.

More range trading in the majors in the short run

Trading impulses look relatively limited, suggesting more range trading for the majors as markets continue to focus on Thursday’s US CPI release as the next major catalyst.

Look for more range trading in the majors in the short run but the window for a USD rebound remains open over the next few weeks as markets reprice March Fed easing bets (15 bps priced in now versus 24 bps at the start of the month).