USD remains in recovery-mode – BTMU

Currency Analyst at BTMU Lee Hardman assessed the recent rebound of the US Dollar.

Key Quotes

“The US dollar has rebounded at the start of this week lifting the dollar index back above the 100.00-level. There has been no clear fundamental trigger for the rebound which may mainly reflect that it had become oversold in the near-term after trending relentless weaker since the start of the year”.

“We had highlighted that there was a high risk that recent US dollar weakness would begin to reverse in the near-term especially against the commodity-linked currencies which have already had a very good run at the start of the year”.

“The market’s increased focus on rising political uncertainty in Europe has also helped to improve the relative appeal of the US dollar”.