Esther Reichelt, currency analyst at commerzbankyou have not seen a situation where the EUR/USD has clearly reacted to a flow of news about the debt crisis.
What is driving the dollar?
“It is impossible for me to say if and how the US debt crisis is included in the EUR/USD exchange rate.”
“The absolute calm in the options market suggests to me that it is monetary policy considerations and not the ongoing US debt ceiling negotiations that are driving EUR/USD.”
“If the recent USD strength is mainly due to the upward revision to interest rate expectations, it also means that the dollar rally is likely to end soon. Otherwise, one would have to assume that the Fed could raise rates.” much more than is currently expected. And not even FOMC hawks are signaling that at the moment.”
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.
