The dollar returned almost all its profits after the agreement with China in a single session. We believe that there is still a significant bearish appetite towards the dollar, and a monthly underlying IPC of 0.2% colder than expected provided an opportunity to re -enter in short strategic positions, says Francesco Pesole, FX Analyst of ING.
The USD can stabilize today after two volatile days
“It is likely that the concerns that positive news related to trade can soon be overshadowed of the damage already caused to the US Treasury) has not narrowed below 50 basic points can continue to reflect concerns related to the sustainability of the debt, and could be promoting the short sale of the USD. “
“The expectations of the Fed rates have not moved after the softer CPIterers than yesterday, probably because April data did not yet show the inflationary impact of the tariff Inflation observed modest in April, and the widely shared pessimistic vision of the growth of the US, the risks are probably biased to the moderate side, and that can contribute to maintaining the recovery of the dollar limited. “
“We believe that the dollar can stabilize today after two volatile days. We still hope to see a preference for high beta raw material currencies over safe shelters as the markets recover the appetite for risk after the best commercial news.”
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.
