US DOLLAR FORECAST: BULLISHUS Dollar range-bound as traders mull US-China commerce deal, Brexit pathIncoming US financial release
US DOLLAR FORECAST: BULLISH
- US Dollar range-bound as traders mull US-China commerce deal, Brexit path
- Incoming US financial releases might fall wanting the markets’ expectations
- Flimsy “part 1” commerce pact, progress fears might drive haven USD demand
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The US Greenback has idled in a slender vary since mid-October. That follows a pullback from the early-September swing excessive, which seems to replicate ebbing haven demand amid swelling hopes for a US-China commerce deal and a seemingly diminished danger of a “no-deal” Brexit consequence.
The reversal proved to be comparatively short-lived because the markets’ rosier disposition pushed 2020 Fed price coverage expectations away from dovish extremes. That stemmed USD promoting, reminding traders that it nonetheless provides a significant yield premium of about 150 foundation factors on common relative to its high counterparts.
Subsequent standstill seems to replicate uncertainty about whether or not this extra optimistic narrative has true foundation. A US-China commerce accord stays nonexistent regardless of soundbites from Washington and Beijing claiming it’s practically full, and Brexit is an enigma till the UK basic election on December 12.
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