In view of Petr Krpata, chief EMEA FX and IR strategist at ING, the planned resumption of US-China trade talks for next week should be seen as marginally positive for the US dollar as it has reduced any imminent need for an aggressive Federal Reserve easing cycle beyond the already meaningful rate cuts priced in for this year.
Key Quotes
“Coupled with rising market expectations of more easing (still to a degree not priced in) to come from other central banks (ECB, Reserve Banks of New Zealand and Australia), this translates into US dollar support, with DXY heading back towards the 98.00 level.”
Share
