USD: Not a good look for next year - AmpGFX
Greg Gibbs, analyst at Amplifying Global FX Capital, do not think that it’s a good look for the USD next year and suggests that it may not sustain gains because the market will weigh the odds that a lagging reactive Fed may at some point have to cut rates to compensate for possibly raising them more than necessary.
“The path towards a weaker USD may be quite volatile as the market weighs the risks to global growth. This close to year-end, investors will be reluctant to set bearish dollar positions. Nevertheless, the fact is that the market has pushed down yields in the US (in spite of a Fed hike) may begin to weaken the USD.”