Chasing the dollar
We have witnessed an "epic" dollar short covering post that FOMC meeting a few weeks ago, but the DXY remains inside the mighty range, with 92.5 as the huge resistance to watch.
Shorts have covered, but remain short, some still in healthy size, chart 2.
Nordea points out a few dollar upbeat points worth reviewing;
1, the growth outlook remains stellar2, upside risks to inflation create upside risks for real rates as the Fed will continue to take baby steps towards tightening3, delta fears are creating headwinds especially for EM countries while perhaps also4, creating upside risks for the USD because of "uncertainty"
Shorts have covered, but remain short, some still in healthy size, chart 2.
Nordea points out a few dollar upbeat points worth reviewing;
1, the growth outlook remains stellar2, upside risks to inflation create upside risks for real rates as the Fed will continue to take baby steps towards tightening3, delta fears are creating headwinds especially for EM countries while perhaps also4, creating upside risks for the USD because of "uncertainty"
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