The fears of the US government's work stopping to weigh on the USD. Yesterday, the US government missed the new Senate budget, but investors are cautious and do not trade the news as positive. The dollar is under pressure also because of the faster global growth that is ahead of the US. At first glance, nothing wrong, but it would force central banks around the world, including the ECB, to start developing their monetary policy at a faster rate.
What can expect for USD?
If the Senate does not vote for the budget, it will negatively affect the USD and sales will likely increase. If the Senate votes the new government budget, we expect an upward revision of the USD, but not a trend change. As the decision will be taken on Saturday, we expect the USD to start next week with GAP in one of two directions, a move that will depend entirely on the Senate's decision. The dollar index is still above level 90, which is to some extent positive. If it goes below this limit, it can be said that the USD has entered the bear market. Although the FED gives indications of at least 3 interest rises in 2018, investors prefer to stay away from the USD. For the moment, we remain negative to USD
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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