USD: Global equity divergence has been a key driver - TDS
Market sentiment has shrugged off Trump's recent escalation of global trade wars and higher-than-expected wage growth in the US, according to analysts at TD Securities.
Key Quotes
“For the USD, global equity divergence has been a key driver the past few months, which argues that any convergence with US share prices could help to cement a floor in the likes of EUR and JPY.”
“With the market nearly priced for two more hikes this year, it is not clear that higher wages would boost the USD, especially if higher costs weigh on share prices and ROW equities start to play catch-up.”
“Most of G10FX trades with a chunky discount at the start of the week.”
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