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No OPEC action could trigger a fresh rally in USD against majors – FXStreet

FXStreet (Barcelona) - FXStreet Analyst and Editor, Omkar Godbole, expects USD to rally against majors –especially EUR.GBP and AUD, on the market anticipated no production cut stance of OPEC.

Key Quotes

“EUR, GBP, AUD and other currencies vulnerable to falling inflation expectations are likely to be the biggest losers against the USD.”

“However, the Japanese Yen is likely to gain strength since falling Crude shall reduce the trade deficit. The inflation expectations would also fall, however, the Bank of Japan is likely to remain silent for next six months.”

“On similar lines, other Asian currencies will benefit from falling Crude prices.”

“If crude prices stabilize, US Dollar risks sharp correction against majors.”

“In case No OPEC action leads to sharp fall in Crude, the worst performers are likely to be Yen crosses – EUR/JPY, GBP, JPY, AUD/JPY and the best performers are likely to be Asian currencies against EUR, GBP.”

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