USD Rebound May Stall Near 100: Scotiabank Strategists

The US Dollar Index has shown a cautious rebound in recent days, but Scotiabank strategists believe it may stall near 100. According to Shaun Osborne and Eric Theoret, the dollar is modestly stronger as markets start the week with caution, driven by defensive equities and firmer Treasuries.

The pair of strategists point out that calendar and event risk this week is significant, including sanctions on Iran and US Personal Consumption Expenditures (PCE) Price Index data. This could lead to moderate gains in the USD as investors pare back their positions.

However, Osborne and Theoret caution that bearish technical trends remain in place, suggesting any rebound may be limited. They note that oscillator signals are showing some moderation in the dollar decline, but no reversal is evident at this point.