Credit Agricole CIB Research discusses the USD outlook for the coming week, and sees a scope for a temporary corrective rebound, while maintains its structural bearish bias on the USD.
"The week ahead is relatively quiet in terms of economic data until the Q4 GDP report on Friday 26 January….
While we suspect that there are a number of plausible explanations, including central-bank reserve diversification, the USD is starting to appear cheap on our short-term valuation metrics.
This suggests that while the long-term trend for the USD is still bearish in our view, the USD is likely to perform better in the short term and is increasingly likely to see corrective rebounds and short squeezes similar to the one experienced in the middle of this week," CACIB argues.
Source: Credit Agricole CIB ResearchOriginal Article
