US: Uncertain political environment to keep the $ pinned down - ING
|With President Trump’s support from both within and outside of the White House waning, the uncertain US political environment is likely to keep the dollar pinned down at these low levels, according to Viraj Patel, Analyst at ING.
Key Quotes
“Indeed, it is difficult to find any other domestic catalyst to more than offset this negative factor and drive the $ higher in the near-term; at best, positive US macro data may provide a supporting role. For sure investors are treading cautiously, with false rumours of Gary Cohn (head of the National Economic Council) leaving yesterday causing equity markets to turn lower. This to us highlights the fragile nature of ‘global recovery’ trades right now; tail risks such as geopolitics, protectionism and the unwind of easy central bank money all provide valid reasons to remain cautious in chasing risk. USD/JPY continues to capture this nervousness and could move down towards the 109.00 level, with the tragic events in Barcelona yesterday also weighing on risk sentiment.”
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