USD: 2-Way Risk Is Back N-Term; Cautious Chasing USD Lower At Current Levels – BTMU


The US dollar is rocking and rolling with stock markets. What is the trade in foreign exchange?

Here is their view, courtesy of eFXnews:

BTMU Research discusses the USD outlook in light of last week’s positive inputs from a more hawkish Fed and a strong jobs report.

So far this year the US dollar has felt like a one way bet given downward momentum has been so strong. Indeed, it has been the worst start to a calendar year since 1987. However, positive developments last week in the US have reintroduced some much needed two way risk back into the outlook for the US dollar.

The Fed provided a more hawkish signal that “further” gradual rate hikes will be required in the coming years if the economy continues to perform in line with the expectations. The Fed’s hawkish policy signal has since been backed up by the release of the much stronger than expected non-farm payrolls report for January,” BTM=U argues.

At the very least, the latest developments provide a timely reminder that the performance of the US dollar is unlikely to remain a one way bet throughout 2018. After the recent sharp sell-off, we remain cautious over chasing the US dollar lower in the near-term,” BTMU advises.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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