USD correction likely to be limited and temporary – BTMU

FXStreet (Barcelona) - The Team at Bank of Tokyo-Mitsubishi UFJ, views that the current USD correction might be limited as the strengthening of the greenback is still not complete.

Key Quotes

“The US dollar is still correcting lower following last week’s more dovish than expected FOMC’s meeting. The US dollar has been undermined by the decline in US yields as more gradual tightening is discounted.”

“We remain comfortable with our view that the US dollar’s strengthening trend is not yet complete. US dollar strength could even overshoot relative to the economic fundamentals”.