US DOLLAR FORECAST – USD PRICES COULD FALL ON SUSTAINED FED BALANCE SHEET GROWTH & LINGERING RISK APPETITE FROM THE SIGNED PH
US DOLLAR FORECAST – USD PRICES COULD FALL ON SUSTAINED FED BALANCE SHEET GROWTH & LINGERING RISK APPETITE FROM THE SIGNED PHASE ONE TRADE DEAL
- The US Dollar continues to rebound into the brand new decade with the DXY Index climbing almost 1.5% greater year-to-date, however USD costs nonetheless commerce roughly 2.0% under the October 2019 peak
- Basic outlook for the US Greenback stays unfavorable contemplating the Fed plans to maintain inflating its steadiness sheet whereas markets develop frothy in mild of an absence of volatility
- Diminishing US Greenback safe-haven demand may endure amid receding recession chances and recovering world GDP progress outlook owing to the newly signed US-China commerce deal
USD value motion simply recorded back-to-back weekly beneficial properties in line with efficiency recorded by the US Greenback Index (DXY). The US Greenback has churned about 1.5% greater up to now this 12 months, which follows the Buck’s 3.5% drift decrease from October 03 to December 31 that marked a 5-month low.
Future potential upside within the US Greenback might be restricted, nevertheless, with USD price outlook missing bullish conviction in mild of dissipating basic catalysts which have beforehand helped propel the US Greenback greater.
A pertinent theme probably contributing to the US Greenback’s dominance final 12 months was demand for safe-haven currencies, although this has light…