The US Dollar was on a roll alongside Treasury yields. But can this continue? Here are some doubts:
Here is their view, courtesy of eFXdata:
BNP Paribas Research discusses the USD outlook and sees a scope for further USD gains in the near-term, while maintaining a structural bearish bias in the medium term.
“We see an elevated risk of a position clearout and unwind of short USD hedges, which could see the USD regain ground for a period of time.
The problem for USD shorts is that elevated US short-term rates make it expensive to maintain this position, particularly versus a negative yield currency like the EUR,†BNPP argues.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.
