W3Schools

The Tell: Uncertainty and weak global economic data are keeping the U.S. dollar buoyant

Economic weakness and uncertainty abroad have bucked up dollars over the past week and year, a trend that is likely to continue, despite a dovish pivot from Federal Reserve, said strategists at Bank of America Merrill Lynch in a recent note.

“A puzzle in the FX market this year is why the dollar is not weaker. wrote Claudio Piron and Athanasios Vamvakidis, strategists at Bank of America Merrill Lynch, in a note Friday.

“The dollar is overvalued and historically strong, the U.S. economy is slowing, and the Fed as turned dovish. Yet, the dollar is much stronger than a year ago and is broadly flat in trade weighted terms this year,” he said.

>>> Original Source <<<

Comentários