Softer USD tone to develop over the next few months – Scotiabank DollarIndex Growth InterestRate Fed Banks
Last week’s drop in the USD was significant – nearly 3% in DXY terms – and unusual. Investors may be divided over whether this was a one-off or whether the start of a bear phase in the USD started with a bang. The latter seems more likely; relative US growth and interest rate differentials have been a major prop for the USD during its bull run and those supports, especially yields, have been diminished.
The broader fall in the USD does appear to be overshooting the shift in spreads somewhat in the very short run but the move is not overly significant at this point and I still expect a somewhat softer USD tone to develop over the next few months as markets factor in the Fed reaching its policy cycle peak.Information on these pages contains forward-looking statements that involve risks and uncertainties.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
AUD/USD defends 0.6800 as USD index fades bounce off 15-month low despite cautious moodAUD/USD bounces off intraday low to 0.6820 heading into Monday’s European session, paring the daily loss amid a sluggish start to the week. Even so, t
Consulte Mais informação »
Weekly Forex Forecast \u2013 NASDAQ 100 Index, EUR/USD, GBP/USD,The difference between success and failure in Forex / CFD trading is highly likely to depend mostly upon which assets you choose to trade each week
Consulte Mais informação »
Pairs in Focus This Week: EUR/USD, GBP/USD, and moreGet the Forex Forecast using fundamentals, sentiment, and technical position analyses for major pairs for the week of July 17, 2023 here.
Consulte Mais informação »
NZD/USD corrects to near 0.6350 despite subdued USD Index, US Retail Sales eyedThe NZD/USD pair has extended its correction to near 0.6350 in the early European session. The Kiwi asset has faced pressure after mixing China’s Gros
Consulte Mais informação »
Eagles linebacker Shaun Bradley hosts 3rd annual free football campWith training camp less than two weeks away, Eagles linebacker Shaun Bradley hosted his third annual free football camp at his alma mater Rancocas Valley High School. NBC Sports Philadelphia’s Ashlyn Sullivan gives us an inside look.
Consulte Mais informação »
EUR/USD eases from multi-month high past 1.1200 as traders reconfirm Fed biasEUR/USD bulls take a breather after posting the biggest weekly jump since November 2022, declining to 1.1220 amid the early hours of Monday’s Asian se
Consulte Mais informação »