USD facing monetary and political headwinds – Danske Bank

Price action around the greenback should now look to the Fed’s plans on the rate path as well as the US political scenario, according to Chief Strategist at Danske Bank Valtteri Ahti.

Key Quotes

“Yesterday, the USD was on a back foot yet again due to a combination of US inflation figures coming out soft, thus questioning the Fed’s hiking pace, and Trump fuelling US isolation fears further by ousting Tillerson as foreign secretary”.

“In the current environment, it seems there will be little relief for the USD, as this suggests the Fed cannot hurry on hikes and that (most) Trump actions are seen as a ‘liability’ for the USD”.

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 securities. 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 Forex 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.