USD slips as risk sentiment improves – Scotiabank

Source Fxstreet

The US Dollar (USD) is softer overall, crude oil is lower while the ILS is some 2% stronger and risk appetite is firmer at the start of what is likely to be a busy week for markets, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note, Scotiabank's Chief FX Strategist Shaun Osborne notes.

DXY remains on track to drop to the 90-95 zone

"Middle East tensions persist but investors appear to be more comfortable with the contained nature of the confrontation so far. That’s not to say that the situation is easing—or might not deteriorate. President Trump said that Isreal and Iran may need to 'fight it out' before a settlement is found and remarked that while the US was not involved in the situation now, that could change. There is no obvious pressure for a quick de-escalation from the US at this point."

"Calmer sentiment for now allows investors to refocus on this week’s event risk—policy decisions from the BoJ, Fed, SNB and BOE as well as the G7 meeting in Canada. Note that Chile and Sweden also hold central bank policy meetings this week. Among the major central banks, only the SNB is expected to ease policy—swaps are fully priced for a 1/4 point cut, returning the target rate to zero. Communication on the policy outlook will be important for the other central banks, especially the Fed."

"The G7 no longer represents major event risk for FX but trade talks are likely to feature prominently in the discussions among leaders and progress here would add to the positive risk mood. Geo-political risk gave the USD a small lift from a new cycle low last week but impact was short-lived and broader USD negative considerations remain. The technical downtrend in the DXY remains intact and the outlook remains negative. Absent a significant, further flare up in geo-political risks, we think the DXY remains on track to drop to the 90-95 zone in the next few months."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Samsung Electronics Forecasts Stronger-Than-Expected Q3 Profit on AI Demand Samsung forecasts Q3 profit of 12.1 trillion won, boosted by strong AI chip demand.
Author  Mitrade
Oct 14, Tue
Samsung forecasts Q3 profit of 12.1 trillion won, boosted by strong AI chip demand.
placeholder
Dollar Gains as US-China Trade Tensions Ease The U.S. dollar remained steady on Tuesday following a shift in President Donald Trump’s harsh stance on tariffs against China.
Author  Mitrade
Oct 14, Tue
The U.S. dollar remained steady on Tuesday following a shift in President Donald Trump’s harsh stance on tariffs against China.
placeholder
Asian Stocks Mixed as Commodities Pause and Yen Draws AttentionAsian equity markets struggled to close the week on a weak note Friday, influenced by ongoing losses on Wall Street that extended into early Asian trading.
Author  Mitrade
Oct 10, Fri
Asian equity markets struggled to close the week on a weak note Friday, influenced by ongoing losses on Wall Street that extended into early Asian trading.
placeholder
Oil Prices Hold Steady Amid Gaza Ceasefire and US Sanctions Oil prices held steady in early Asian trading on Friday following the announcement of a ceasefire between Israel and Hamas.
Author  Mitrade
Oct 10, Fri
Oil prices held steady in early Asian trading on Friday following the announcement of a ceasefire between Israel and Hamas.
placeholder
Bitcoin drops below $110K ahead of $22B options expiry; altcoins tumbleBitcoin fell below the $110,000 mark on Friday, heading for a steep weekly loss as nearly $22 billion in cryptocurrency options were set to expire. The drop also comes as traders await key U.S. inflation data that could influence the Federal Reserve’s policy outlook.
Author  Mitrade
Sept 26, Fri
Bitcoin fell below the $110,000 mark on Friday, heading for a steep weekly loss as nearly $22 billion in cryptocurrency options were set to expire. The drop also comes as traders await key U.S. inflation data that could influence the Federal Reserve’s policy outlook.
Related Instrument
goTop
quote