USD appears supported for the time being – Danske Bank

Chief Analyst at Danske Bank Jakob Christensen assessed the current prospects for the greenback.

Key Quotes

“The USD strengthened a little last night after comments from both US President Trump and his economic council director Larry Kudlow that the current ‘strong dollar’ is a sign of a confidence in the US and its economy and notably that a ‘steady’ dollar is preferable”.

“This is a bit of a shift in rhetoric from the US administration over the summer and reduces the risk of US FX intervention, which has surfaced recently”.

“However, it is also a hint that the US administration will tolerate a strong dollar only as long as the US economy is booming; the loss of momentum that we see for the US in coming quarters could thus easily go hand in hand with fading USD support”.