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
Trump Openly Seizes Oil, Threatening to “Control Iran Overnight.” WTI Crude Has Doubled to $115 This Year; Will Oil Prices Face More Variables?On April 6, Trump remarked regarding the Iran issue that he could "control the entire country overnight" and indicated that the deadline for ceasefire negotiations could be tomorrow (the
On April 6, Trump remarked regarding the Iran issue that he could "control the entire country overnight" and indicated that the deadline for ceasefire negotiations could be tomorrow (the
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $103.60 during the early Asian trading hours on Tuesday.
Crypto Weekly Radar: All eyes on Donald Trump’s ultimatum, US macroeconomic dataCrypto markets begin the week with mixed sentiment, with Bitcoin (BTC) trading above $69,000 following last week’s rebound. Still, markets remain cautious as traders weigh risks stemming from Donald Trump’s renewed threats toward Iran ahead of the ultimatum set for Tuesday.
Crypto markets begin the week with mixed sentiment, with Bitcoin (BTC) trading above $69,000 following last week’s rebound. Still, markets remain cautious as traders weigh risks stemming from Donald Trump’s renewed threats toward Iran ahead of the ultimatum set for Tuesday.
WTI eases below $103.50 as US, Iran reportedly seeking 45-day ceasefireWest Texas Intermediate (WTI), the US crude oil benchmark, is trading around $103.30 during the early European trading hours on Monday. The WTI price retreats after reports that the United States (US) and Iran are making a push for a 45-day ceasefire.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $103.30 during the early European trading hours on Monday. The WTI price retreats after reports that the United States (US) and Iran are making a push for a 45-day ceasefire.
Spot Gold gapped marginally lower at the weekly opening, with the XAU/USD pair battling to retain the $4,600 mark early in the Asian session.
Related Instrument
