TD Securities' macro team has indicated that the recent decline in the US Dollar following the July Federal Open Market Committee (FOMC) meeting is likely a short-term pullback. This view suggests that the current softness does not signal a reversal but rather a temporary retracement.
According to FX Street, TD Securities expects the US Dollar to maintain an overall upward trajectory throughout the third quarter of 2026. The team’s analysis points to a broader bullish trend despite the recent fluctuations observed after the July FOMC announcement.
For Japanese investors and traders, understanding these dynamics is crucial as the US Dollar’s strength or weakness directly impacts FX markets, including USD/JPY pairs, and can influence broader market sentiment across equities and crypto sectors.