Kit Juckes, chief currency strategist at Société Générale, discusses the foreign exchange market. The Fed Funds appreciation peak continues to support the Dollar, but in September, the greenback should fall.
EUR/USD is finding a footing
“By the time rates peak, markets believe that in September, the dollar should be lower. For now, they’re busy checking that spike higher.”
“We believe that the EUR/USD is finding a bottom here, partly because the US rate market has discounted heavily, and in part because the European rate market has more to discount.”
“The 200-day SMA on the USD/JPY is at 137.70. If this level were to break, it would trigger a move lower in the yen.at least temporarily.”
“As for the British pound, Andrew Bailey’s comments yesterday took your breath away. EUR/GBP is in a slow and erratic uptrend, but I could use some rally in the British pound before I hit the mountains over the weekend.”
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.
