USD recovers the bullish appeal – Westpac
|Strategist at Westpac Richard Franulovich sees the greenback, tracked by the US Dollar Index, gathering further traction post-Brexit.
Key Quotes
“Reluctantly USD bullish here, Brexit imposing a structurally higher “political risk premium” on assets that will not go away soon and may well intensify, even if Article 50 is never triggered”.
“Stress points that will prevent risk premiums from ever falling too far include Italy’s senate reform referendum Oct 2016, US presidential elections Nov 2016, Dutch elections Mar 2017, French Apr-May 2017 and German Sep-Oct 2017 – each carry high risks of a “protest” vote”.
“USD likely firms into these events but we are reluctant USD bulls given that even ahead of Brexit the Fed had been gravitating toward an even more glacial path for rates. USD if anything vulnerable next week to a payrolls report”.
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.