Home Forex The US dollar rally will soon end naturally – Commerzbank

The US dollar rally will soon end naturally – Commerzbank

by SuperiorInvest


The American dollar (USD) has risen sharply in recent days. Economists at Commerzbank analyze the outlook for the Greenback.

The end of the USD rally?

If the overall picture of aggressive rate cuts is factored into the G10 universe, the US dollar is the currency that should benefit the most. And that’s exactly what happened. But such a process has a natural end.

Soon, assuming the general picture remains the same: that central banks will start cutting rates in the foreseeable future and that the Fed will continue to be one of the more active central banks of the G10. Over time, this effect can be more or less pronounced. But as long as this remains the scenario that the market values, we are talking about two or three cents (in EUR/USD), not much more.

That EUR/USD is more comfortable today in the 1.0900 area than in the mid-1.0800 area may already be due to this.

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