The greenback bounce hasn’t impressed
A couple of weeks in the past all of the speak within the FX market was about ‘the top of the US greenback’.
As standard, that marked a backside and the US greenback has staged a bounce. It bought assist from a rout in tech shares and common danger aversion.
None of that’s stunning. What does shock me is simply how shallow the greenback bounce has been. After continuous promoting since late-Could, the extent of the bounce within the Greenback Index is barely recognizable.
In the meanwhile, USD/JPY is sinking and even cable is bouncing regardless of continuous Brexit information. If you wish to steer clear of information danger, the AUD/USD appears strong right here.
General, there’s a lot extra worth in fairness markets exterior of the US and the lack to maintain any sort of greenback power is a really adverse signal going ahead.
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