Window for further USD weakness against the EUR and GBP could prove short-lived – MUFG

FXStreet Insights Team FXStreet

USD suffers worst sell-off since July but will downward momentum be sustained this time around? Economists at MUFG Bank are sceptical that this US Dollar sell-off can be sustained.

JPY remains best placed to outperform amongst the major currencies

What would be the catalyst for an even more dovish turn for the Fed now with a March rate cut close to priced? We seem to be at peak optimism in terms of Fed cuts next year and a correction seems more likely than not.

The window for further USD weakness against the EUR and GBP could prove short-lived.

The JPY remains best placed to outperform amongst the majors currencies as the Fed, ECB and BoE all begin to lower rates next year.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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