Exclusive snippet from Deutsche Bank, still bullish on the US dollar:
- dollar likely to remain strong against the euro
- The Fed has a tougher battle against inflation than the ECB
- Positive US indicators point to persistent inflationary pressures
- immigration to the US is falling, even before Trump's policies, choking “a positive supply shock (that) was instrumental in allowing the Fed to turn worse this year”
DB expects the Federal Open Market Committee (FOMC) to cut the nesting week of the meeting, followed by a “very long pause.”
- The ECB is expected to continue
An ECB rate cut is expected today.
This article was written by Eamonn Sheridan at www.forexlive.com.
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