ING’s Chris Turner notes that the Dollar stays well sustained as markets concentrate on strong US development, above-target rising cost of living and expectations for further Federal Get tightening. A possibly solid United States September CPI is seen keeping price assumptions boosted. Turner highlights DXY combination over 102 as favorable and chooses a step in the direction of 102 85 today , with geopolitics using added support.
DXY combination points to further advantage
“Rather, FX markets are preferring to concentrate on the cyclical story of decent United States development, above-target rising cost of living and the possibility of the Federal Reserve treking 75 bp from existing levels.”
“Disallowing a huge fall in energy rates today, which seems unlikely, Wednesday’s launch of September United States CPI rising cost of living looks set to maintain those Fed tightening expectations extensively intact.”
“With US bond markets closed for the Columbus Day public holiday, it must be a silent day for FX markets.”
“But DXY loan consolidation over 102 looks favorable, and our preference would certainly be for a raise to 102 85 today.”
(This article was developed with the aid of an Expert system device and reviewed by an editor. Know much more.
