Dollar correction has not yet run its course

Key takeaways

• The dollar correction lower has not yet run its course, though pace of depreciation is likely to slow
• We maintain our euro-dollar forecast at 1.21 by year-end
• Euro-Swiss franc should gradually gain, but franc depreciation will likely be limited
• The market is now awakening to the no-deal Brexit risk and sterling should struggle near term, though a basic EU/UK deal should provide support later
• We continue to expect gradual strength for the yen
• We lower our dollar-yuan forecasts and would view a Biden presidency as bullish for the Chinese currency.