The USD has been relatively well supported, ahead of next week’s Fed monetary policy announcement. However, there remains heightened uncertainty as when it comes to the Fed’s communicated tightening path.
Even if expectations of a lift-off next week rose considerably of late, weak price developments keep expectations in favour of a dovish hike. However, should domestic demand conditions start to improve more considerably, this should prove sufficient in compensating for a stronger greenback’s and weak commodity prices’ dampening impact on price developments.
Overall we remain in favour of buying USD dips, in particular against the CHF and JPY.
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