Monday, August 21, 2017 4:07 AM EDT
The US dollar found its footing, stabilizing after long weeks of losses. What’s next? The team at CIBC already looks into the end of the year.
Here is their view, courtesy of eFXnews:
CIBC FX Strategy Research notes that policymakers in the US have appeared reasonably comfortable that inflation will start to heat up again.
“…And even though it hasn’t shown much sign of doing so yet, the latest minutes revealed that the inflation debate only heated up a touch with only a handful more mentions compared with May. Most importantly, “many” still viewed the recent weakness as transitory.
While it’s true that we’ve had one more soft CPI print since the Fed met, the comfort of many officials still keeps the possibility of a December rate hike very much alive – something that markets aren’t currently priced for,” CIBC adds.
“As such, we could see a pause in US$ weakness over the second half of this year,” CIBC concludes.
Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and ...
more
Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader's level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch's authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of such information.
less
How did you like this article? Let us know so we can better customize your reading experience.