- Analytics
- News and Tools
- Market News
- USD dynamics - Credit Agricole
USD dynamics - Credit Agricole
This year's USD dynamic in our view resemble a familiar 'smile' pattern whereby the dollar strengthened on the initial dip in risk appetite early in the year, weakened as the Fed turned more dovish and should start strengthening again as the economy picks up and tightening expectations are rebuilt.
In her semi-annual testimony Chair Yellen pointed to a "sharp" increase in consumer spending, which should be confirmed by a solid May personal income and spending report next week. Meanwhile, the broader labour market indicators have been supportive of the Fed's view that the very soft May payrolls report was somewhat of an aberration and our economists still expect two rate hikes to be delivered in H2.
However, with a Brexit having materialised and as global growth expectations may turn more muted on the back of it, it appears more unlikely that the Fed will consider higher rates anytime soon. This does not need to dampen the outlook for the USD, which anew benefits from rising safe haven appeal in an environment of EU driven risk aversion.
We remain long USD versus AUD and CAD via options. In an environment of unstable risk sentiment and a stronger USD, the commodity bloc is likely to suffer more considerably.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
