-
G10 FX Week Ahead: US Dollar unlikely to step off the podium
After a week where the Fed made another step towards tapering and the Chinese government’s regulatory clampdown generated a risk-off wave that spread across Asian and global markets, one would expect to see a stronger dollar across the board. In fact, the dollar is on track to have the worst week of 2021, as it lost ground against all G10 currencies. Indeed, US real yields touched record lows but real-rate differentials have not proved to be a determining factor for FX moves since markets have turned more sceptical about the global recovery story. The main trigger for the dollar correction was Powell’s post-FOMC ... (full story)