The USD is trading broadly higher. However, economists at Scotiabank expect the greenback to turn back lower.

Markets start to think about rate cuts in the US

“Broader USD gains may extend somewhat to correct some its steady losses over the past week but there is little getting round its loss of appeal as the Fed rate cycle peak nears – and markets start to think about rate cuts in the US.” 

“Short-term, corrective USD gains driven by risk aversion will give way to more, fundamentally driven losses.”