USD upside potential becoming more limited – MUFG

Economists at MUFG Bank believe that is too soon for US dollar sell-off but the upside scope could be more limited now. 

A peak in short-term rates could be approaching

“With the Fed communication on Wednesday offering up the possibility that short-term rates are approaching a peak, incoming economic data will be crucial in determining that but we see the scope for US dollar to remain well supported for now.”

“Our DXY forecast for end-June of 104.10 is likely to be breached soon.”