USD: Biggest One Week Loss Since Nov; What’s The Trade?

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The US dollar certainly suffered from the revelations about Trump’s alleged intervention with the FBI investigation. What’s next?

Here is their view, courtesy of eFXnews:

TD Research notes that the USD is set to post its biggest one-week loss since November amid a rise in political uncertainty and the associated risks to economic growth and policy implications.

“Our model shows market pricing of the June Fed hike has slipped to 70% from a peak of 89%. We don’t expect the recent political upheaval to derail a June hike,” TD argues.

Strategy-wise, TD thinks that for medium-term investors, the recent dip will likely provide opportunities to buy the greenback ahead of next month’s Fed meeting.

Still, in the near-term, TD notes that interest will be on Comey’s testimony next week that is likely to provide the signal for markets.

The USD could remain under pressure into the event but the impact of his testimony will be binary: new developments that work against Trump will soak the USD while no news is goods for the dollar,” TD argues.

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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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