Strategists at TD Securities give their views on the greenback.
Key Quotes
“Divergence has made a comeback. US growth/inflation dynamics remain firm and the ECB has signaled an extended pause”.
“We expect this to prove temporary, however. We see the peak of USD optimism approaching as US macro momentum begins to fade”.
“The USD’s fiscal boost should stay short-lived as the Fed endgame approaches. US political risks are rising while the mix of growth, valuation, and positioning should see USD gains begin to unwind”.
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