TD foresees a regime change for the US dollar

<p>TD Securities projects a downturn for the USD in the near-term, emphasizing a relative calm in risk events. A series of economic indicators, including payroll numbers, ISM data, and other economic reports, signal a moderation in the US economy's growth, spurring a rally in Treasuries and a decline in the USD's strength.</p><p>Key Points:</p><ul><li><p>Economic Data Indicating Slowdown: Recent data such as payrolls, ADP employment, JOLTS job openings, and durable goods orders collectively suggest an easing in the US economy's expansion pace.</p></li><li><p>Bonds and Currencies React: These economic signs have sparked a significant rally in US Treasury bonds and catalyzed a depreciation of the USD, particularly benefiting risk-sensitive, high beta currencies.</p></li><li><p>Shift in USD Dynamics: TD Securities identifies a clear regime shift for the USD, pointing towards a trend reversal from its previously robust position.</p></li></ul><p>Conclusion:</p><p>TD Securities anticipates the 'USD lower' trend to persist, with fewer risk events to disrupt this movement. The observed moderation in key economic indicators underpins a notable regime change, hinting at a reversal of the USD's fortunes, with potentially far-reaching implications for global currency markets.</p><p>For bank trade ideas, <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1699628303932000&amp;usg=AOvVaw00F9xu5g4fvm2zMMs5XZZ0">check out eFX Plus</a>. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1699628303933000&amp;usg=AOvVaw2MUCypcSrZ6Xdszw11CCyY">Get it here</a>.</p>

This article was written by Adam Button at www.forexlive.com.