The jump in the US Dollar appears overdone – ING
|The US Dollar (USD) is enjoying good momentum after a week full of central bank decisions. Economists at ING analyze Greenback’s outlook.
End-of-week rally looks overdone
The jump in the Dollar appears overdone. The Federal Reserve sent a rather clear message earlier this week: some resilience in activity data won’t be a barrier to cutting as long as inflation shows downward momentum. We suspect the central bank’s dovish surprises in Switzerland (rate cut) and the UK (less hawkish narrative) have contributed to the strong Dollar momentum.
As things stand, we don’t see the Dollar rally having legs. As the dust settles after a very busy week for global central banks, we suspect markets may scale back long USD positions as the relatively dovish message by the Fed should still resonate.
Our view is that key March US data, released in the first half of April, can pave the way for a more sustainable Dollar decline.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.