Dollar Rally Hits ‘Choppy Waters’ as Two-Way Trading Returns
- JPMorgan says investors were net greenback sellers last week
- Some momentum indicators have reached extended levels
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Some key market metrics are starting to suggest the Trump-inspired rally in the dollar may have plateaued, as bullishness fueled by the US election wanes.
Bloomberg’s gauge of the currency stabilized Wednesday after three days of declines. It’s holding just below the two-year high it touched last week. Momentum indicators are signaling further upside may be limited in the short-term. Investor flow has become less one-sided, according to traders, and views about the currency’s direction are starting to become more circumspect.