TD think the USD has further scope to fall – 4 factors

<p>TD is looking for the US dollar to fall further. </p><p>Analysts at the bank say that after the most recent "positive" inflation report, the USD experienced a dramatic slide. And say that since the positioning-driven surge in May, they have been recommending USD shorts, and believe the current price movement is only the beginning of a more extensive bearish turn in H2.</p><p>TD says that most medium-term factors:</p><ul><li>including volatility and valuation mechanics, </li><li>front-end rate momentum</li><li>relative central bank policy, </li><li>and global growth and yield curve dynamics</li></ul><p>are working against the USD, and thus support their view that the dollar has significant potential to decline through H2 and perhaps even through most of 2024.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.