Greg Gibbs, Analyst at Amplifying Global FX Capital, suggests that before we go all into year-end, there are a number of important events that could tip the scales against the USD.
Key Quotes
“We need to be wary that Chinese stepped up efforts to support growth may generate improved confidence in the Asia region. Brexit uncertainty is dragging down the GBP and EUR, but a breakthrough in EU and UK negotiations may be near. The Trump-Xi meeting on 1 December may ease trade tensions.”
“If the US equity market downturn becomes severe enough it could dampen expectations that the Fed will hike rates. Political risk may return as an issue in the US as the market contemplates Democrats exercising their power in the House of Representatives.”
“The fall in oil prices could help stabilise global growth expectations and close the performance gap between the USA and the rest of the world.”
Share
