USD index relinquishing overvaluation – Westpac
Richard Franulovich, Research Analyst at Westpac, explains that near term USD index risks skewed toward a test of the lower end of its Election Day range (95.88-98.70) as regional Richmond/Empire surveys flag an ISM next week toward 50.
Key Quotes
“Absent a shock a 14 June Fed hike is a done deal but the USD has struggled to capitalise, yield spreads if anything are moving against the USD as Eurozone growth has firmed and ECB officials signalled a nod to normalisation may be seen at their Jun and Sep meetings.”
“Trump’s growth policies face obstacles, notably the challenge Republicans have finding a consensus that satisfies House conservatives and centrist Senators. “Russiagate” raises the political obstacles yet further, both as an all-consuming distraction and by reducing the president’s political capital. Political risks surge yet further in September when a new government funding bill is due and the debt ceiling comes into play.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
