USD: Downside risk to Q2 outlook, upside risks later – Credit Agricole

News

The US dollar is stronger today after the Markit services PMI

Credit Agricole CIB Research discusses the USD
outlook and sees tactical downside risks in Q2 and medium-term upside
risks in H2.

We now see downside risks to our Q2 USD outlook but also
upside risks to our H221 USD outlook as a whole and will be reviewing
our G10 forecasts soon
. In that, we will try to strike a
balance between the positive USD-impact of the tighter US financial
conditions, because of Fed policy normalisation, and the USD-negative
impact of the global cyclical upturn,” CACIB notes. 

“We will also consider the fact that any positive USD returns on the
back of Fed tightening may diminish over time given that the US
exceptionalism could fade as the rest of the world,” CACIB adds.

For bank trade ideas, check out eFX Plus.

Invest in yourself. See our forex education hub.

Articles You May Like

Risk Aversion Continues on China, Euro Support by Yields
How to Place a Trade on TradingView | Step-By-Step Tutorial
Dollar Down as Substantial Majority of Fed Members Judged Slowing Hike Soon Appropriate
Trading Styles [Trading Basics Series]
Some tentative signs of slowing inflation in Europe