Within the context of our medium-term dollar bearish outlook, we had been anticipating a countertrend dollar bounce. It was to be fueled by short-covering as the adverse developments had been discounted, rate differentials were moving in the US favor, and the technical indicators were stretched. When the dollar traded higher after the disappointing ADP estimate and the events in Washington, and again on the headline miss with the December non-farm payrolls, that lent credence call. However, it looked dicey last week as sterling, and the Canadian dollar made new highs since the Q2 18. Yet, the greenback ended the week ... (full story)