The peak of the Fed policy cycle is likely to be negative for the USD – Scotiabank

The USD is ending the week trading mixed versus the majors. Shaun Osborne, Chief FX Strategist at Scotiabank, analyzes the greenbackUSD’s undertone remains weak but the broader sell-off is, I think, looking a little stretched, at least in the short run.

The peak of the Fed policy cycle is likely to be negative for the USD; risk assets should respond positively and investors will be more inclined to move capital away from the relative safety of the USD to riskier, higher-yielding assets in anticipation of some relaxation in monetary policy.Information on these pages contains forward-looking statements that involve risks and uncertainties.

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