According to Rabobank economists, Last week’s dollar sell-off is unlikely to continue due to geopolitics.
Volatility will remain high
“NATO chief Stoltenberg has warned that “we must not make the mistake of underestimating Russia” and that “the next few months will be difficult“In addition, there remains a high risk that tensions between the US and China, Europe and China and Japan/Australia and China will flare up again.”
“From a currency market standpoint, the strongest conclusion that can be drawn from last week’s geopolitical news stream is that volatility will remain high.”
“While the recent news has brought welcome relief, the resolution of the war or of the differences between China and the West and its allies still seems far awayand this should act as a brake on dollar bears.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.