Let's talk fundamentals; With inflation on both the U.s side and Uk proving 'stickier' than the Fed's Fomc (although inflation is coming down more than Uk presently, in the U.s,) and the Boe's Mpc would like, and with the Fed effectively telling the markets to be prepared for higher rates for longer, re a possible cut, it is hard to know which way the market will turn next. I think the present state of the Ukraine/Russia and Israel/Hamas things are priced in, and with Uk in a 'technical' recession with the forecast consensus that it will be 'shallow,' these are effectively the main fundie themes currently @ play that may affect Gbpusd.
There are those in this thread that espouse a longer-term strong dollar thesis but I am not sure they have adequately explained why? I would be interested to learn why from a fundie and/or technical point of view. I can see how Usddxy bounced up from potential rbs per the chart below, but are there any more technical reasons to support this longer-term strong dollar thesis?
Interesting article re link below from Lawrence Summers (former U.s Treasury sec under Bush jnr, - 43,) and it may speak to what happens if Trump loses the election, assuming he is the Gop nominee. Summers Warns Markets May Be Underpricing the Risk of Disorder | Forex Factory
Usddxy Mthly below
There are those in this thread that espouse a longer-term strong dollar thesis but I am not sure they have adequately explained why? I would be interested to learn why from a fundie and/or technical point of view. I can see how Usddxy bounced up from potential rbs per the chart below, but are there any more technical reasons to support this longer-term strong dollar thesis?
Interesting article re link below from Lawrence Summers (former U.s Treasury sec under Bush jnr, - 43,) and it may speak to what happens if Trump loses the election, assuming he is the Gop nominee. Summers Warns Markets May Be Underpricing the Risk of Disorder | Forex Factory
Usddxy Mthly below
Trader with an Edge.
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