# FX Monthly September 2020: Dollar correction has not yet run its course | Lombard Odier

> Lombard Odier's September FX outlook says the dollar's correction has not yet run its course, though the pace of decline should slow. The bank keeps its year-end euro-dollar forecast at 1.21 and cites Fed average inflation targeting, negative US real yields, and dollar overvaluation as reasons for further downside.

- Date: 2020-09-22 · published 2020-09-22T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/7699-fx-monthly-september-2020-dollar-correction-has-not-yet-run-its-course-lombard
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

A continued weaker dollar would support dollar-priced commodity prices and US export competitiveness, though the outlook expects more two-way price action in the near term.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲
- GBPUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-03-25 | [FX Monthly \| A tale of two dollars \| Lombard Odier](https://feedsoft.ai/events/6588-fx-monthly-a-tale-of-two-dollars-lombard-odier.md) | -2.4% | -1.3% |
| DXY | 2023-01-16 | [Dollar finds its footing near seven-month low, all eyes on yen \| Reuters](https://feedsoft.ai/events/37978-dollar-finds-its-footing-near-seven-month-low-all-eyes-on-yen-reuters.md) | -0.0% | +0.7% |
| DXY | 2019-08-02 | [Dollar weakens as September rate cut bets mount](https://feedsoft.ai/events/57761-dollar-weakens-as-september-rate-cut-bets-mount.md) | +0.4% | +1.7% |
| DXY | 2020-08-31 | [Dollar hits two-year low, fourth month of losses on Fed inflation mandate](https://feedsoft.ai/events/51844-dollar-hits-two-year-low-fourth-month-of-losses-on-fed-inflation-mandate.md) | +0.1% | +1.4% |
| DXY | 2023-03-30 | [Sterling set for biggest monthly gain vs dollar since November](https://feedsoft.ai/events/37118-sterling-set-for-biggest-monthly-gain-vs-dollar-since-november.md) | -0.4% | -0.3% |
| EURUSD | 2020-08-31 | [Dollar hits two-year low, fourth month of losses on Fed inflation mandate](https://feedsoft.ai/events/51844-dollar-hits-two-year-low-fourth-month-of-losses-on-fed-inflation-mandate.md) | -0.7% | -2.0% |
| EURUSD | 2023-12-29 | [Dollar sees first yearly loss since 2020](https://feedsoft.ai/events/32898-dollar-sees-first-yearly-loss-since-2020.md) | -1.0% | -2.4% |
| EURUSD | 2023-11-30 | [US dollar gains but set for worst monthly loss in a year, euro falls](https://feedsoft.ai/events/33379-us-dollar-gains-but-set-for-worst-monthly-loss-in-a-year-euro-falls.md) | -1.6% | +0.9% |

## Sources

- lombardodier.com: https://www.lombardodier.com/contents/corporate-news/investment-insights/2020/september/dollar-correction-has-not-yet-ru.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.