Analysts at Danske Bank suggest that despite strong US jobs and manufacturing PMIs, USD was remarkably stable towards the end of last week which also saw the US and China getting one step closer to a trade deal.
Key Quotes
“A possible bottom in the US cycle does not change our view that the Fed has gone on hold for now and much faded the carry momentum support for USD. As we are at the same increasingly confident that a trade deal could arrive – possibly as early as March – and fuel a trough for China, the sky is clearing notably for EM currencies and eventually also for EUR/USD.”
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