Dollar Bears Are Undaunted After Getting Burned by Rally on Jobs

Bloomberg/Katherine Greifeld & Lananh Nguyen/08-04-17

Dollar bears, singed by the currency’s biggest rally since January, say they’re still holding their ground.

…[T]he dollar is merely back where it started the week against the euro, which held above a key technical level that it breached last week for the first time since August 2015. The dollar-bear camp can also take cheer in one observation: Expectations for the pace of Federal Reserve tightening barely budged on the report.

“It is more of a story of providing underlying dollar support at key levels rather than a full-on reversal,” said Alan Ruskin, global co-head of foreign-exchange research at Deutsche Bank. “Unfortunately for the dollar, the ideal dollar scenario needs a significant change in Fed expectations.”

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