USD: Feeble attempt to form a base between 96.8-97.8 - Westpac

Richard Franulovich, Research Analyst at Westpac, suggests that the USD index is making a feeble attempt to form a base between 96.8-97.8.

Key Quotes

“ECB next week likely to make a modest pivot toward less accommodation but unlikely to leapfrog rising expectations, likely further cementing the tentative USD base but topside will be tough to come by. Fed concerns around low inflation are growing, influential insider Brainard noting this week that if the soft inflation picture continues it could ultimately lead to a reassessment of the Fed’s policy path.”

“Russia-gate” should get a good hearing next week too, ex-FBI Director Comey set to testify late in the week. Trump’s growth policies already faced nearly insurmountable obstacles, notably the challenge in finding a consensus that satisfies House conservatives and centrist Senators. Russia-gate creates yet another impediment to the Republicans’ agenda.”