The dollar peaked in September, when so did real rates. Kit Juckes, global chief currency strategist at Société Générale, expect to see the end of the downtrend for now.
A Bucket of Cold Water to Calm Dollar Bears
“A pause seems likely. This week’s economic calendar is sparse on important data to move markets, and market participants could find themselves discussing the meaning of the US data rather than doing anything.”
“We caution that the reactions of the rate and currency markets are tame so far, and that leaves room for the dollar rebound to go further.”
“USD/JPY at 135, EUR/USD at 1.05 and GBP/USD below 1.20 seem more likely this month than another dollar crash“.
“But none of this alters the two key market factors. First, as the risk of a deep global recession fades, the dollar remains vulnerable; and second, the lack of a new dominant theme means we may see choppy trading conditions until one emerges.”
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.
