- Analytics
- News and Tools
- Market News
- US Dollar Index: Range-bound with conflicting currents – MUFG
US Dollar Index: Range-bound with conflicting currents – MUFG
FXStreet reports that according to economists at MUFG Bank, there are now so many macro factors for market participants to focus on it is no wonder that FX markets remain mostly within recent ranges
“We see little change in the two biggest negatives for market sentiment at the moment. The first is the significant re-escalation of COVID-19 in Europe and some signs of re-escalation in the US as well .The second is the failure in the US to reach a deal on a fiscal stimulus package ahead of the election”
“The markets for now remain half-hearted in its conviction on reducing risk. This makes sense for now given the large-scale fiscal stimulus likely in 2021. What that means for inflation and the US deficit outlook point to the strong need for a weaker US dollar in order for these large-scale deficits to be financed going forward.”
“There are two natural market adjustment mechanisms for higher levels of capital requirements in the US – higher rates or a weaker US dollar. We are betting on the Fed following through with its commitment to cap rates, leaving the US dollar as the only viable adjustment mechanism for financing record deficits going forward.”
© 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
