US Dollar Losing Momentum as Fiscal Risks Rise, DBS Says
DBS Group Research’s Philip Wee sees fading momentum in the US dollar as markets reassess US-Japan intervention, shifting BoJ and Fed expectations, and rising US fiscal risks.
USDJPYDXY
The US dollar is showing signs of losing steam, according to DBS Group Research’s Philip Wee. He argued that the currency’s momentum is being undercut as markets reassess several key drivers.
Key factors cited include:
- Reassessment of US-Japan intervention
- Shifting Bank of Japan and Federal Reserve expectations
- Rising US fiscal risks
The note highlights growing unease over the US fiscal outlook and changing policy expectations as central bank views evolve. Wee’s view implies the dollar may struggle to extend gains without clearer support from rate differentials or safe-haven demand.
Source: FXStreet Forex News