Analysts at ANZ explained the USD’s weakening trend has broadened and a more synchronised US dollar sell-off has ensued.
Key Quotes:
“In part this has been driven by a slightly more resilient global economy, but policy easing has also played a role. The dovish tone of the Fed has kept the reflation trade on track, and in the near term the risks suggest this momentum could be maintained.
However, as we look to the second half of this year, we think there are still major question marks around the sustainability of this sell-off and think it is too early to say that the USD cycle has made a major turn.”
(Market News Provided by FXstreet)