USD Index: Downside risks should be limited unless 10-year UST yields drop below 4.50% – SocGen
Dollar resumes rally on Middle East crisis. Economists at Société Générale analyze USD outlook.
Dollar set to remain supported this week
Suspense around another Fed hike or pause in November, and geopolitics in the Middle East should keep the Dollar supported this week.
Profit-taking could emerge if US retail sales on Tuesday and/or housing construction on Wednesday disappoint and tilt the balance towards a Fed hold.
Downside risks should be limited unless 10y US Treasury yields drop below 4.50% and Oil prices retreat.
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