The US dollar is clearly on the back foot due to a set of political and monetary events. What’s next?
Here is their view, courtesy of eFXnews:
BTMU FX Strategy Research notes that the USD has continued to trade at weaker levels following the release of the latest US GDP and Employment Cost Index reports which proved weaker than expected.
Overall, BTMU notes that the reports will continue to dampen expectations for further Fed tightening this year and leave the US dollar offered.
However, BTMU argues that while the USD is lacking fundamental support, the risk of a reversal is also high against most other G10 currencies in the very near term.
“The stage is being set for a corrective rebound but there is no obvious fundamental trigger yet,” BTMU argues.
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