Financial market stress, central bank decisions. Economists at Commerzbank expect the US Dollar to benefit more than the Euro from the easing of global financial market stress.
What will happen to the Dollar now?
“The more the financial market stress eases, the sooner FX traders are likely to assume that the tightening of credit conditions will only be moderate. As a consequence, they will have to price in further Fed rate hikes.”
“From now on the Dollar might benefit more from the easing of the stress than the Euro.”
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