GBP Cheers Stimulus, Rally at Risk of Stalling


USDFUNDAMENTAL HIGHLIGHTS:

  • USD Heading Higher into May FOMC Meeting
  • Inflation and French Election the Key Risks

The near term outlook remains bullish for the US Dollar as rate differentials continue to move in favour of the greenback. Meanwhile, softer risk assets is also likely to keep the greenback underpinned and thus maintain a foothold above the 100 level.

The most recent Fed minutes provided details on what quantitative tightening will look like when it is announced at the May meeting. However, much of the limelight had been stolen by Fed’s Brainard who emphasised that this is an inflation-fighting Federal Reserve who will look to over deliver with regard to policy tightening. As such, the USD will likely continue its ascendency heading into the May meeting and even more so, now that commodity currencies have begun to pullback.

G10 FX Performance

Looking ahead, on the domestic front we will see the latest round of inflation figures. However, with the direction of monetary policy clear for all to see with a 50bps hike alongside QT at the May meeting expected. The data is unlikely to have a notable impact for the near-term policy outlook and therefore, volatility in the dollar is likely to be muted, unless there is a significant deviation from expectations. Instead, the bigger focus may on the fallout from the first round of the French election in light of the narrowing gap between Macron and Le Pen in the polls. What was once a sure bet for a Macron victory is now looking closer to a possible upset. As such, should Le Pen perform better than the polls currently suggest in the first round, expect the Euro to come under pressure in the lead up to the second round, which could see a move to 1.07.

French Election Risk





Source link

Related articles

Bitwise acquires Ethereum staking service Attestant, boosting AUM to $10 billion

Bitwise Asset Administration has acquired Attestant Restricted, an institutional-grade Ethereum (ETH) staking supplier, in a deal that enhances the agency’s whole belongings below administration (AUM) to over $10 billion, in line with a...

Aris Mining Company (ARMN) Q3 2024 Earnings Name Transcript

Aris Mining Company (NYSE:ARMN) Q3 2024 Earnings Convention Name November 13, 2024 9:00 AM ET Firm Contributors Neil Woodyer - Chief Government OfficerRichard Thomas - Chief Working OfficerRichard Orazietti - Chief Monetary OfficerOliver...

Greenback advances close to 7-month peak after US inflation information By Reuters

By Chibuike Oguh NEW YORK (Reuters) - The U.S. greenback superior close to a seven-month excessive towards main currencies on Wednesday after information confirmed U.S. inflation for October elevated in keeping with...

Nostra Terra offers replace on its Texas oil and gasoline manufacturing, operations

Nostra Terra, a world oil and gasoline exploration and manufacturing firm centered on its Pine Mills producing asset in Texas, U.S., has offered a manufacturing and operations replace. Highlights Part 1 workover program full Manufacturing elevated...

The way to Take a Daytime Nap With out Ruining Your Nighttime Sleep High quality

It is time to cease nap shaming. Although napping can have an effect on your sleep at evening when you aren't aware, there's a solution to get one of the best of each...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com