Window for further USD weakness against the EUR and GBP could prove short-lived – MUFG
|USD suffers worst sell-off since July but will downward momentum be sustained this time around? Economists at MUFG Bank are sceptical that this US Dollar sell-off can be sustained.
JPY remains best placed to outperform amongst the major currencies
What would be the catalyst for an even more dovish turn for the Fed now with a March rate cut close to priced? We seem to be at peak optimism in terms of Fed cuts next year and a correction seems more likely than not.
The window for further USD weakness against the EUR and GBP could prove short-lived.
The JPY remains best placed to outperform amongst the majors currencies as the Fed, ECB and BoE all begin to lower rates next year.
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