The pressure on the USD is steady and relatively intense – Scotiabank

The US Dollar is trading mixed ahead of Gross Domestic Product (GDP), Core PCE data. In the view of economists at Scotiabank, the USD outlook remains negative.

GDP, PCE data awaited

“The USD outlook remains negative and losses risk accumulating as investors move to price in peak inflation/peak Fed.”

“US Q4 GDP is expected to slow to 2.6% (SAAR), from Q3’s 3.2% clip but GDP tracking data suggests growth momentum is (so far) holding up relatively well around the same pace seen in the last quarter and GDP might surprise on the upside.”

“Core PCE is expected to slow to 3.9% (from 4.7%) which should support expectations for the Fed to slow the pace of tightening and weigh on the USD.”

See – US GDP Preview: Forecasts from ten major banks, firm growth