The US Dollar has little potential for strength right now – Commerzbank
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER 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_level1)]
Ulrich Leuchtmann, Head of FX and Commodity Research at Commerzbank, sees good reasons to be cautious with USD longs at the moment.
“It is becoming increasingly clear why the ‘it was always alright in the end’ argument is of little use when it comes to the looming US Treasury debt ceiling.”
“The economists and political analysts who tell us the story of ‘it was always alright in the end’ have a different risk-reward profile to those who have to manage USD risks. If they are wrong either way it has more or less the same effect for them. So from their perspective, it’s rational to bet on the scenario with the highest probability. But if that were to go wrong, the potential consequences for the Dollar would be dramatic.”
“Anyone looking at USD risk has to weigh the probabilities against the consequences. And then the risk of default becomes so relevant that it is likely to make many market participants more cautious. This may be one of the reasons why the Dollar has so little potential for strength right now.”
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
