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The panic selling has ceded a bit, reflecting the hope of mobilization by policymakers. The Fed recently pointed to a willingness to act, with TD Securities experts now expecting a Fed cut in March and April.

Key quotes

“The Fed has more room to cut than most and, in turn, could reduce the costs of USD selling. Our global growth framework shows the USD is trading at a 1.5% discount.”

“A mix of renewed Fed easing and a rising political premium could cement the recent highs, kick-starting a marginal push lower. As this tug of war persists, we expect more volatility in currencies.”

“Sander’s ascent in the polls has dovetailed with a peaking USD, leaving much attention on Super Tuesday. It’s a dynamic cocktail mix for markets with global growth pulling the USD in one direction and politics and policymakers pushing it the other way. The latter will likely win out ahead of the March Fed meeting.”