💵🔺Dollar Correction Has Further Room to Run: Cable FX Macro

• The dollar staged a bear rally from late July to August, it touched levels not seen since January before rebounding. The reactions to recent tier-1 data in the form of jobs and inflation point to an extended correction. Ahead, the ECB, FOMC and BoJ meetings could set the tone

• Another factor that some desks are leaving aside is the outperformance U.S. risk assets. Despite the losses seen this quarter, the S&P 500 Index continues to outperform major equities. This could provide support to USD vs the G10. Rates looking overbought, a correction in yields is also dollar positive