Worsening global growth conditions to keep USD well supported into the jobs data on Friday – MUFG
|Economists at MUFG Bank discuss EUR/USD outlook.
Global growth concerns, weak inflation feed downside risks
“While global growth optimism continues to fade, the markets at the same time has removed nearly all of the monetary easing priced in the US by the end of the year. These developments are ideal for a strengthening US Dollar which looks set to extend further over the short-term.”
“Weaker inflation data now is unlikely to alter plans over the coming two meetings to hike twice by 25 bps so we don’t see weaker inflation as a negative for EUR at this point. But worsening global growth conditions are a clear Dollar positive which will help keep the USD well supported into the jobs data on Friday.”
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