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.
“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”.
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