Dollar in Cross-Hairs as Trade Truce Fails to Derail Fed Bets
Right now the Dollar has already climbed down from its historical heights and Investors are aiming for it to continue going down even further!
The dollar has weakened about 2% from this year’s high in May after the Fed signaled it was open to lowering borrowing costs for the first time in more than a decade. Funds have cut long positions on the world’s reserve currency for three straight weeks, with swap markets indicating a rate cut in July will kick off an easing cycle.
“The U.S. dollar has peaked, and once a deal is eventually announced and the Fed cuts interest rates, we’ll see it trend even lower,” said Shane Oliver, head of investment strategy at AMP Capital in Sydney. “It won’t fall in a straight line, but it will fall.”
Trading Central – USDCAD : sentiment is a sell to 1.2790 if Below 1.3300
Trading Central – NZDUSD: sentiment is a buy to 0.6991 if Above 0.6587
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