RBC Global Asset Management has warned that the U.S. dollar appears significantly overvalued. The firm points to the ballooning U.S. budget deficit—now forecast to surpass $1.9 trillion this year—as a key factor behind its bearish outlook.
RBC's position might be reflected in the FX market with the USD/CAD under pressure. The pair has been forming lower highs and lower lows since late May, suggesting a potential continuation of the short-term downtrend.
Key support levels to watch might include 1.3640, 1.3600, and potentially 1.3560 if selling accelerates. On the upside, a recovery might need to break above 1.3720, with further resistance possibly around 1.3760 and 1.3820.
RBC's position might be reflected in the FX market with the USD/CAD under pressure. The pair has been forming lower highs and lower lows since late May, suggesting a potential continuation of the short-term downtrend.
Key support levels to watch might include 1.3640, 1.3600, and potentially 1.3560 if selling accelerates. On the upside, a recovery might need to break above 1.3720, with further resistance possibly around 1.3760 and 1.3820.
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Disclaimer
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