USD: Energy shock may delay downtrend – MUFG
MUFG analyst Derek Halpenny says the ongoing Middle East conflict, stronger US data, and crude oil risks are limiting USD selling. Better manufacturing and retail figures have not shifted Fed expectations much, but a full rate hike remains priced in.
MUFG's Derek Halpenny notes that the US Dollar's renewed downtrend may be delayed by an energy shock. Key factors include the ongoing Middle East conflict, stronger-than-expected US economic data, and crude oil price risks. These elements are limiting selling pressure on the greenback.
Recent improvements in US manufacturing and retail sales figures have done little to alter Federal Reserve expectations. However, the market continues to price in a full rate hike. The combination of geopolitical uncertainty and energy price concerns is providing near-term support for the USD.
Source: FXStreet Forex News