The dollar is at risk of a correction lower in the near-term if the U.S. economic outlook weakens, Danske Bank strategist Mohamad Al-Saraf said in a note.
The market could be underpricing prospects of interest-rate cuts by the Federal Reserve, and a softer U.S. growth outlook would likely trigger falls in the dollar, he said.
That means the euro has some upside potential versus the dollar if upcoming U.S. economic data miss expectations, although it will probably remain range-bound.
