USD: Consolidation in Q1 and a deeper correction afterwards – TDS

The central question swirling around markets nowadays is whether the USD has peaked. While the correction can extend for a bit longer, it is still early for a reversal, in the opinion of economists at TD Securities.

USD has a bit more juice left in the tank

“While the USD has started its peak, we don't expect the reversal yet, suggesting room for consolidation in the near term.”

“The best of the relentless USD move is now behind us, leading to a broader reversal through next year. Still, we think that will require some patience as sequencing will likely follow a cadence of peak, consolidation, and then reversal.”