Morten Helt, Senior Analyst at Danske Bank, sees the greenback gathering further traction towards end of 2018.
Key Quotes
“USD strength failed to materialise yesterday despite the escalation in trade woes, as risk appetite stayed buoyant. In recent days, USD has notably shrugged off both the continued rise in USD yields above 3% and the trade issue”.
“However, the recent ‘fatigue’ in the FX market regarding these factors may not last: the trade dispute is set to remain a source of uncertainty and the Fed will continue to out hike expectations, in our view. This should ensure pockets of USD strength towards year end”.
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