Current market conditions favour a stronger US dollar – MUFG
|The US dollar has continued to weaken modestly during the Asian trading session after losing some upward momentum towards the end of last week. The scaling back of expectations for an even larger 100 basis points (bps) hike later this month is the main reason for the USD pullback.
Scaled back expectations for 100 bps Fed hike dampens upward momentum
“The pullback for the US dollar has been driven by a scaling back of expectations for the Fed to deliver a larger 100 bps hike at the upcoming FOMC meeting on 27th July.”
“While the scaling back of expectations for a 100 bps Fed hike later this month has taken some of the upward momentum out of the US dollar, we still believe that current market conditions favour a stronger US dollar.”
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