In his weekly forex review for FX&MM, Natixis’ senior forex analyst, Nordine Naam, argues the US dollar will continue to strengthen in light of myriad global stimuli.
Naam sees Trump’s sliding position in the US presidential polls, and the prospect of Fed Funds rate hike in December, as factors with the capacity to bolster the greenback’s performance in the short-to-mid-term. However, for Naam, it is also plausible that the Q3 reporting season, typically characterised by volatility, may monetarily halt the greenback’s rally over the next few weeks.
Meanwhile, Naam’s predictions for the euro and the pound remain downbeat. He predicts the GPB/USD will extend its correction towards 1.18 given the growing likelihood of a hard Brexit. Similarly, Naam believes the EUR/USD’s performance will also be impaired by forthcoming political events.
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