Forex
Dollar Rebound Hinges on Strong Data and Policy Follow-Through
The US Dollar's rebound is contingent upon stronger data and policy follow-through, according to TD Cowen's Washington Strategy team led by Chris Krueger. They note that a durable rebound in the USD requires renewed upside surprises in US data.
The analysts remain bearish on the Dollar for now, citing limited upside versus the Canadian Dollar and Chinese Yuan as markets await key US payrolls and inflation releases.
A stronger rebound in US policy follow-through is necessary to boost confidence in the Dollar. The team expects a meaningful rebound in August's US payrolls after a disappointing July showing.