They suggest that the factors supporting a stronger dollar have already been largely priced in, and there is a high likelihood that further upside potential is limited. The outlook for the dollar has shifted from “bullish” to “neutral,” and investors seem to be already prepared for outperformance in US economic indicators.
Furthermore, they point out the potential factors that could reduce the attractiveness of a long dollar position, such as the possibility of stronger Chinese data and stabilizing European economies as we approach year-end.
Personally, I agree with this view. Even if there were situations where the US dollar continued to be bought, the upside appears to be constrained. I anticipate that selling pressure will likely strengthen in the future.
In the recent past, it seems that the flow of selling in the dollar has partially shifted into cryptocurrencies.