FXstreet.com (Córdoba) - With the Fed meeting out of the way and the month long correction in foreign currencies against the dollar likely to have largely run its course, the BBH Global Currency Strategy Team expect "the dollar to trade with a firmer tone."
"Even though the US economy is slowing, it is still likely to grow at a faster pace the euro zone the United Kingdom. Rising pressures in the euro zone should also emerge after the recent string of positive developments. This is likely to support the dollar against foreign currencies, especially European currencies. Month end positioning adjustments could lead foreign currencies to deviate from the underlying trend as well. Data-wise, next week new home sales, durable goods and the Chicago PMI will be important reports to watch", they add.
"Even though the US economy is slowing, it is still likely to grow at a faster pace the euro zone the United Kingdom. Rising pressures in the euro zone should also emerge after the recent string of positive developments. This is likely to support the dollar against foreign currencies, especially European currencies. Month end positioning adjustments could lead foreign currencies to deviate from the underlying trend as well. Data-wise, next week new home sales, durable goods and the Chicago PMI will be important reports to watch", they add.
