USD Sell-Off Over? – Danske Bank
Chief Analyst at Danske Bank Allan von Mehren believes the downside in the US Dollar could be almost over.
“The sell-off in the DXY Index accelerated early on Tuesday, only to reverse later in the day”.
“This could be a sign that we are approaching the end of the USD sell-off. We also note the change in correlation compared to earlier in the year. Yesterday the USD strengthened during the day versus EUR and JPY alongside a sell-off in risks”.
“EUR/USD reached an intra-day high of 1.1616 but we have not yet got a clean break of the 1.15-1.16 area, suggesting that we could be consolidating here for a while”.