US Dollar: Unlikely to be a fundamental trigger to reverse the weakening trend heading into year-end – MUFG

The US Dollar has continued to weaken over the holiday period. Economists at MUFG Bank analyze Greenback’s outlook.

No let up for USD selling over holiday period

In the absence of important economic data releases and/or central bank speakers, there is unlikely to be a fundamental trigger to reverse the US Dollar’s weakening trend heading into year-end.

If inflation continues to slow at the start of next year, it will become harder for the Fed to justify keeping the policy at current restrictive levels.