- Analytics
- News and Tools
- Market News
- U.S. economy lost some immunity from global uncertainties - Westpac
U.S. economy lost some immunity from global uncertainties - Westpac
Richard Franulovich, the head of FX strategy at Westpac, think the U.S. economy has lost some of the immunity from global uncertainties, hitherto a key backbone of USD strength.
- “May durable goods orders admittedly showed encouraging underlying resilience - a key fragility and focal point for the Fed– but a broad range of soft surveys have weakened in recent weeks.
- These weak surveys likely reflect the earlier threat of tariffs on Mexico (and maybe some waning of fiscal stimulus too). The good news is that Mexican tariffs have been abandoned implying a recovery in the surveys next month. The bad news is that the June data round is incomplete.
- The risk is that we see one more lunge lower in the USD (DXY low 95s) if ISM and payrolls are weak. But there are not many currencies in a position to capitalize on USD weakness; easing biases at the ECB, RBA and RBNZ will constrain EUR, AUD and NZD respectively, while Brexit drama will cap GBP, leaving JPY and CAD as the only real options. But even so we are not getting carried away; markets price in 75bp in Fed cuts this year and 115bp by end2020 - aggressive unless you’re forecasting a material slowdown, which we are not.”
© 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
