- Home
- >
- FX Daily Forecasts
- >
- Wall Street banks forecast a weak dollar, traders disagree
Wall Street banks forecast a weak dollar, traders disagree
Rating:
Loading...The majority of major bank analysts such as Morgan Stanley and Nomura forecast dark days for the US dollar, but the market shows us another story.
The US currency is up nearly 1% on the day the FED surprisingly changed its position on dovish during their January 2019 session. Forex futures are also becoming more optimistic based on the options market. Contracts that are raising the dollar against its larger rivals over the next three months are approaching their highest levels.
Even if the repositioning itself is relatively low, the resumption of a strong dollar threatens the positive outlook for emerging markets that started well in January, when the dollar was cheaper.
"Analysts always dramatize in the forecasts - that's their job." - says David Govett, chief FX strategist for Marex Spectron. "The Fed was not super-dovish, but rather less hawkish, and the US economy is in better shape than most other big competitors - and with higher interest rates too - see Europe - a complete mess." - adds Govett.
"Those who are bearish to the dollar will have a little more patience." - says Georgette Boele, currency strategist at ABN Amro Bank NV.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
