There may be little potential for USD gains to develop further – Scotiabank
Source Fxstreet
The US Dollar Index (DXY) recovers above 104.00. Economists at Scotiabank analyze Greenback’s outlook.
Spreads have moved only marginally in the USD’s favour over the past month
Although markets continue to reprice Fed rate cut risks in the coming months (Fed swaps imply only 75 bps of easing through the end of the year now, about half of what was priced in at the start of February), this is not an obvious driver of USD gains because implied rate cuts by other central banks have been slashed as well.
Spreads have moved only marginally (5-6 bps for 2Y spreads) in the USD’s favour over the past month and the DXY is still trading above my estimated fair value (based on DXY-weighted yield differentials) which sits at 103.04 today.
There may be little potential for USD gains to develop further, in other words.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
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 Forecast: Gold Rises as Nonfarm Payrolls Unexpectedly Turn Negative; Can CPI and PPI Help Break $4,500? As of the Asian session on August 10, gold prices ( XAUUS D) extended last week's trend into this week after a sharp rise last week, with the latest gold price trading near $4,345, up sli
As of the Asian session on August 10, gold prices ( XAUUS D) extended last week's trend into this week after a sharp rise last week, with the latest gold price trading near $4,345, up sli
West Texas Intermediate (WTI) oil price moves little after registering gains over 6.5% in the previous day, trading around $81.40 during the Asian hours on Tuesday.
WTI advances above $82.50 due to mixed signals regarding potential US-Iran dealWest Texas Intermediate (WTI) oil price extends its gains for the third successive day, trading around $82.70 per barrel during the Asian hours on Wednesday. Crude oil prices advance as investors weigh mixed signals regarding a potential deal between the United States (US) and Iran.
West Texas Intermediate (WTI) oil price extends its gains for the third successive day, trading around $82.70 per barrel during the Asian hours on Wednesday. Crude oil prices advance as investors weigh mixed signals regarding a potential deal between the United States (US) and Iran.
WTI declines below $82.50 as oil inventories rise far more than expectedWest Texas Intermediate (WTI), the US crude oil benchmark, is trading around $82.45 during the early Asian trading hours on Thursday. WTI declines on a larger-than-expected build in US crude oil inventories. Traders will closely monitor the developments surrounding US-Iran talks for fresh impetus.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $82.45 during the early Asian trading hours on Thursday. WTI declines on a larger-than-expected build in US crude oil inventories. Traders will closely monitor the developments surrounding US-Iran talks for fresh impetus.
Related Instrument
