Synopsis:

Credit Agricole emphasizes the continued attractiveness of the USD for near-term investment, highlighting its strong fundamental qualities compared to other G10 currencies.

Key Points:

• Strong Fundamentals: The USD's appeal is supported by high nominal and real carry, superior growth prospects, and robust liquidity.
• Buy on Dips Strategy: Given the current stall in the USD rally, Credit Agricole advises buying on dips, suggesting the currency will likely recover as market corrections subside.
• Market Watch: With a light US data calendar this week, Fedspeak will be closely monitored for insights into the Federal Reserve's policy outlook and its impact on USD valuation.

Conclusion:

Credit Agricole projects that the USD will regain momentum following a brief period of correction, backed by its superior economic fundamentals