Dollar to resume the downtrend if SBVs woes cap Fed rate hikes – SocGen
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
The foreign exchange market’s reaction to the SVB affair has been milder, on the whole, than the reaction in other markets. How contagious the SBV crisis proves to be will decide whether it sends the dollar down slowly or up fast, Kit Juckes, Chief Global FX Strategist at Société Générale report.
“The reason it matters for FX is clear – if SBVs woes cap Fed rate hikes, slow the US economy somewhat but not disastrously and don’t spread globally, the Dollar is set to resume the downtrend that began at the end of September, and which was interrupted by strong data in February.”
“If on the other hand, SBV was a canary in the global economy’s mine, the Dollar will be stronger in a few months.”
[/s2If]
Join Our Telegram Group
