The feeling of the USD falls through the tariffs and the focus on the Fed – Scotiabank

The US dollar (USD) is mixed compared to its main currency pairs. The USD has risen a little in front of the GBP, JPY, Aud and NZD, but has lost marginal ground against EUR, CAD and CHF As the operations begin here, they inform the main strategists of FX of Scotiabank, Shaun Osborne and Eric Theoret.

Mixed USD in front of the main

“The DXY is slightly down, staying close to the minimum of yesterday’s session at 97.7, which was in effect a new test of the minimum of last Wednesday’s fall in the index around the reports on Powell’s dismiss The broader feeling of the dollar is weakening again, as reflected in the fall of the risk premium of the dollar, which goes back to reflect a slight premium for the sale options of the USD to 1 and 3 months in relation to the purchase options. Being at risk are weighing on the feeling of the USD. “

“The Fed communication blackout is in force before the FOMC of July 30, but there are two officials talking today. The president of the Fed, Powell, pronounces” initial comments “at a Fed conference, while Governor Bowman is talking to the OpenAi CEO, Altman. Powell could have interesting things to say, but none should talk about policy perspectives. disturbing. While questions about President Trump’s relationship with the president of the FED and all that that could imply in the future persists, tariffs remain a threat to global trade and short -term pricing stability (at least), however, the actions continue to rise. “

“There are graphics circulating that compare recent movements in the S&P 500 with the 2007/2008 developments in the index. Who knows if that is some type of warning? But it is clear that the amplitude of the Nyse market is still quite poor – men shares are promoting the gains of the broadest index – which is not a great health signal and we are just in the threshold of that time of the year when the US actions typically face a Little bump.