Week Ahead: Greenback's Recovery Looks Poised To Continue

Summary

• The dollar traded choppily last week but settled higher against all the G10 currencies. It finished the week on a firm note. The messy upside correction for the dollar may continue.
• The market has already discounted a strong chance (~90%) that the ECB cuts rates in June and maybe even another time before the next Fed cut is fully discounted.
• Given that the US's push for re-shoring challenges the essence of Mexico's modernization, the peso has been unexpectedly resilient.

Klaus Vedfelt

The dollar traded choppily last week but settled higher against all the G10 currencies. It finished the week on a firm note. The messy upside correction for the dollar may continue. Despite disappointing retail sales and manufacturing output, and softer-than-expected CPI