USD has peaked for now, but scope for weakness may not be significant in the near term – Scotiabank

The US Dollar (USD) is tracking a little lower on the session. Economists at Scotiabank analyze Greenback’s outlook.

Easter week may be a little quiet for markets

USD losses are relatively limited within the core major currencies and while short-term price signals suggest the USD has peaked for now, scope for weakness may not be that significant in the near term.

Easter week may be a little quiet for markets. The calendar is pretty light today and for the week overall, there is not much top-tier US data to focus on – housing, regional Fed manufacturing surveys, Durable Goods, Personal Income, Spending and PCE. 

The PCE data may be the data point the markets focus on this week. The street is looking for a 0.3% MoM gain in the core PCE reading while will leave the YoY rate steady at 2.8%. But these are February numbers and Chairman Powell commented last week that the early year numbers might be a ‘bump in the road’. March data are more important now.

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