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TD Securities: The dollar still has room to recover, and the recent decline has been too large

Mark McCormick, global head of foreign exchange and emerging markets strategy at TD Securities, said the dollar should recover this week as the recent pullback seems to be too large. “We think the dollar will consolidate this week, reversing some of the recent losses,” he said in a note. "Positioning and short-term valuations have been overstretched, increasing the risk that the USD will rebound on the back of strong non-farm payrolls data. TD Securities has also upgraded its view on the direction of the US dollar towards the end of the year, and now expects EUR/USD to end the year at 1.08.

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