The US Dollar (USD) is trading mixed to a little lower overall on the session after a bull run that has stretched for 11 consecutive days through Monday’s trading, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

USD bull run stalls after eleven consecutive daily gains

“Among developed market currencies, these sorts of sustained daily or weekly bull/bear runs rarely extend for deeply into double digits (more than 10 days or weeks in one direction, in other words) without some sort of pause or pull back. The USD is looking generally over extended and prone to a minor correction at least on the charts but that does not necessarily mean a deep or sustained drop.”

“Broader USD gains are supported by the rebound in market-driven US yields amid a resilient economy and the tightening US presidential election race may also have revived pro-dollar ‘Trump trades’ (pro-growth, pro-inflation, tariffs etc.) that were a feature of the markets through mid-year.”

“On the session so far today, somewhat softer US equity futures and a plunge in crude oil (following reports that Israel will not target Iran’s nuclear or oil facilities) are adding to the USD-supportive backdrop.”