The dollar got quite a few blows recently and corrected some of its gains. Is it beginning to recover?
The team at BNP Paribas discusses this topic and suggests an interesting opinion, especially on which currencies to tackle.
Here is their view, courtesy of eFXnews:
Today’s Asian session has witnessed a remarkable turnaround with Japan’s Nikkei 225 Index rallying 3.5% and USD/JPY leads the pack moving up to 107.39, notes BNP Paribas
“We see the mid-October collapse in US rates and the pullback in the USD as largely disconnected from the macro backdrop. The Fed is entering a blackout period ahead of the October meeting so it will be up to the US and global data to help determine whether the Fed sticks with its original taper plan,” BNPP argues.
“We remain on the sidelines for the moment but a continued improvement in market sentiment would in our view make the risk-reward for long USD positions versus the EUR and JPY increasingly attractive,” BNPP advises.
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