- Analytics
- News and Tools
- Market News
- USD strength may rest on clay feet – Commerzbank
USD strength may rest on clay feet – Commerzbank
Tuesday was another strong day for the USD. Ulrich Leuchtmann, Head of FX and Commodity Research at Commerzbank, analyzes Greenback’s outlook.
USD strength and no end in sight?
It seems to me that the necessary condition for EUR/USD weakness is for the majority of the market to take a more optimistic economic view of the US rather than Europe. That means the reason for the USD strength therefore is the prospect of a special ‘soft landing’ of the US economy. Is this prospect realistic? It is not impossible. And for that reason, I do not want to claim that the USD strength necessarily rests on clay feet. However, a soft landing is not a fait accompli either.
It seems to me that the FX market has become too convinced of a ‘soft landing’ for the US economy. If we do see that, a little further USD strength might be justified, but probably not much more. If we don’t see it though, a strong correction of USD strength would then be justified. For that reason, I still feel more comfortable in the camp of skeptics, who are not so confident about the recent USD strength.
I am well aware of the fact that my skepticism may turn out to be inappropriate if the soft landing of the US economy does materialize but have the impression that the skeptic camp is not sufficiently populated.
© 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
