The US Dollar is on a roll following an upbeat retail sales report and a hawkish hike by the Fed. What’s next?
Here is their view, courtesy of eFXdata:
MUFG Research discusses the USD outlook and adopts a tactical caution stance in chasing the USD higher in the near-term on the back of the following 3 reasons:
“Firstly, the overall amount of projected Fed tightening over the forecast period has remained unchanged…
Secondly, the US rate market already appears reasonably well priced for that potential Fed policy outlook…
Thirdly, the US dollar has already strengthened sharply in recent months with the dollar index up by around 5%,” MUFG argues.
“Overall, the developments support our caution in chasing the US dollar higher in the near-term,” MUFG concludes.
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