Published: 2024-09-02T13:09:59.000Z
USD flows: Consolidating at Better Levels
Director of Research , Macroeconomics and Strategy
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The USD is holding at better levels in the Latam morning/European afternoon, with the U.S. and Canada on holiday.
Traders do not see any fundamental move behind the USD multiday bounce, rather see it as a technical correction. Aside from data and DM central banks this month, FX traders are also focused on asset markets. U.S. Equities have recovered after the early August volatility and broken correlation with JPY movements. However, equity strategists have divergent opinions, with some noting that U.S. stocks do not do well after the 1 Fed rate cuts as a slowing economy dominates and hurt earning prospects. Any signs of a harder landing and equities could spur renewed USD losses against the JPY.