Chief Analyst at Danske Bank Jens Sorensen noted the momentum around the greenback remains solid for the time being.
“Safe-haven demand dominated FX markets yesterday as pressure on emerging markets mounted with notably TRY and RUB under pressure from continued tensions with the US”.
“Notably EUR/CHF plunged to the 1.1450 level and EUR/USD is back flirting with new summer lows”.
“While yesterday’s US PPI figures did not point to any significant pipeline inflationary pressure, today’s US CPI figures should not be able to derail USD support from political issues at present and a Fed that remains priced on the soft side, in our view”.
“However, keep an eye on the – small but non-negligible – risk of US intervention to weaken USD”.
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