Foreign exchange analysts at Danske Bank overall expect that the global economy will continue to struggle over the next few months as the tighter monetary policies sap demand and confidence. In this context, it expects that tighter financial conditions will provide underlying dollar support and maintain generally unfavourable risk conditions. The bank does see risks on both sides to the central forecast and both extremes would tend to undermine the dollar. There will be a rebound in risk conditions if there is a sharp decline in core inflation and a more resilient than expected global economy. It adds; “Also a much ... (full story)