Economists at Credit Suisse stay core bullish on the US dollar and see scope for a potentially final push higher later on in the fourth quarter.
USD rally is seen overdone near-term
“The latest move to a new cycle high for the DXY has not been confirmed by weekly momentum, suggesting a trend that is tiring. Whilst we maintain our core and long-held bullish outlook, we think early Q4 can see a consolidation phase unfold, before a potentially final push stronger in the USD for a move to 118.37 in the DXY, potentially the 121.02 high of 2001.”
“Good support is seen at 109.29 through to 107.68, which is a cluster of levels including the 55-day average, 23.6% retracement of the entire 2021/2022 uptrend and September low which we look to ideally prove a solid floor. Should weakness extend (not our base case), we would expect strong support next at 105.01/104.64.”
