USD: Further N-Term Gains But Upside Firmly Capped – Citi

0

The US Dollar has gained ground amid concerns about trade talks between the US and China. What’s next?

Here is their view, courtesy of eFXdata:

 Citi discusses the USD outlook and sees limited near-term gains.

USD Index (DXY) recovers almost all its late January losses this week though with much of this strength driven by weakness elsewhere (further EUR declines following weak eurozone data and dovish ECB speculation; GBP weakness amid heightened Brexit uncertainty; AUD weakness following RBA Governor’s move to a neutral bias),” Citi notes.

“Stronger US data helps (ISM services and payrolls) but a further bout of USD gains likely notwithstanding in the short term, the dovish removal of the Fed’s forward guidance on rates in the January FOMC meeting amidst the backdrop of continuing strength in the US economy likely supports a risk rally (including in FX) over time against USD,” Citi adds.

For lots more FX trades from major banks, sign up to eFXplus

By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.

Get the 5 most predictable currency pairs

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.

Comments are closed.