USD: Recovery Ahead Vs EUR & GBP: What's The Trade? Where To Target? – ABN AMRO

ABN AMRO FX Strategy Research notes that the USD has been negatively impacted so far this on two main front: 1- Investors scaling back expectations about Trump’s fiscal policy. 2- US economic data have come in below the expectations. 

In that regard, ABN expects in the coming months 1- an improvement in US economic data, 2- further rate hikes by the Fed, and 3-a rise in US Treasury yields and somewhat higher US real yields.

This, according to ABN, should result in a recovery of the US dollar towards 1.05 in EUR/USD and 1.25 in GBP/USD.

Strategy-wise, ABN argues that investors will likely take this USD rally as an opportunity to off-load their early-established long USD positions which would limit the potential upside of this USD rally. 

EUR/USD is trading circa 1.0974 and GBP/USD is trading circa 1.2911 as of writing. 

Source: ABN AMRO Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews http://feedproxy.google.com/~r/Efxnews/~3/rntv7Vhf9wk/usd-recovery-ahead-vs-eur-gbp-whats-trade-where-target-abn-amro

from Online Forex Trading Resource
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