Everything you need to know about the Dollar
From the original
This post explains why I continue to expect Dollar weakness despite big foreign inflows
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4 itemsPeak Dollar Strength
FX Daily: Dollar to build a stronger footing
FX Daily: Dollar to build a stronger footing
FX Daily: Dollar price action quite poor
The desk highlights a period of notable weakness in the US dollar despite supportive fundamentals such as elevated energy prices and firm short-dated US interest rates. Per the full note from ING, the subpar performance of the dollar is attributed to a combination of low-volatility investment flows away from the dollar and high volatility in USD/JPY as macro hedge funds position for a potential move below 150. With a Friday US CPI release expected to frame the Fed's next steps, the current softness in the dollar raises questions about market positioning amidst stable global equity indexes and expectations for a forthcoming 25bp rate hike from the Fed. This ongoing situation is in contrast to the increasingly bullish sentiment displayed towards both the euro and the pound, as indicated by recent consensus forecasts.