U.S. Dollar Not Out of Woods Yet as Position Shift Could Extend
- USD sustains largest weekly loss since September
- Some analysts warn that further losses are possible
- Profit-taking cited but other risks loom on horizon
- BoJ to discuss rate rises as ECB frets over inflation
Image © Adobe Images
The U.S. Dollar rose back to its feet during the final session of the week but was walking wounded after sustaining heavy losses against all major counterparts and some analysts have warned that its downward correction could extend further over the coming weeks and months.
U.S. exchange rates were steadier Friday but still carried their largest weekly declines since September after remarks from Federal Reserve (Fed) Chairman Jerome Powell were followed on Wednesday by a wave of selling that many perceived as profit-taking by speculative traders.
“Adjectives such as painful/nasty/nonsensical all seem fitting, however in hindsight, an over-exposed USD long has been taken to the mill,” says Jonathan…
