fxs_header_sponsor_anchor

News

USD: Less of a safe haven now - ING

According to Chris Turner, global head of strategy at ING, narrative on the US dollar is slowly moving onto its next chapter as the Fed has connected the dots between Trump’s trade war and US business confidence, it seems that any news on increased trade tension is having a diminishing marginal positive impact on the dollar.

Key Quotes

“It seems the market is slowly but surely gaining confidence that the dollar is coming to the end of its eight-year bull run. Here, other banks have joined our view that President Trump might consider direct intervention to weaken the dollar later this year. The dollar also failed to gain any real benefit after a very rare 0.3% month-on-month rise in US core CPI yesterday. Instead, focus on the US fiscal position may be growing.”

“There’s only US PPI today and a Fed speaker (Charles Evans 16CET), but it looks as though the market is confident of a 25 basis point Fed cut on 31 July – especially with what we read as a pretty dovish set of June FOMC minutes. We think the investor dollar mindset has now shifted to ‘sell the rally’. DXY to drift to 96.35/50.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.