The Dollar failed to appreciate at all despite US data surprising to the upside. The economists of Commerzbank analyze the prospects for the greenback.
The market is wondering how much dollar strength justifies the improved economic outlook in the US.
The Dollar managed to appreciate against the average of the G10 currencies in a straight line since the summer due to the improvement in the US economic outlook. Currently, the market is wondering to what extent this justifies the strength of the Dollar. Until that is decided, positive US economic data will have only a weak effect at best.
Of course, that doesn’t mean we’ll only see a limited fluctuation in USD exchange rates, just that it will be a search for market equilibrium rather than a data-driven development.
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.