Dollar’s bounce not necessarily over yet – SocGen
Source Fxstreet
Dollar’s bounce does not look done yet, Kit Juckes, Chief Global FX Strategist at Société Générale, says.
Rate and FX re-pricing can still help USD and hurt GBP
This week saw more weakness in manufacturing, in hard data and surveys, but solid retail sales and an ever-tightening labour market have pushed longer-dated yields up. The data and the rate move have supported the USD but looked at in this way, the impression is that there is potentially more to go. The Dollar’s bounce isn’t necessarily over yet.
As for the UK, we’ve seen enough softness in labour market and retail sales data this week that further downside in EUR/GBP is very limited, and there is room for GBP/USD to drift to 1.2500 before we get the mid-February UK data blast.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
My Top 5 Stock Market Predictions for 2026Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
Discover the best Japanese stocks to buy, including AI semiconductor leaders, Buffett-backed trading houses, and undervalued Japan stocks benefiting from corporate reforms and yen trends.
Gold price (XAU/USD) loses ground after registering gains in the previous day, trading around $4,050 per troy ounce during the Asian hours on Tuesday.
Oil prices remain depressed on Tuesday, as hopes of a new round of peace talks between the US and Iran boosted hopes of a de-escalation of the Middle East conflict.
Related Instrument
