US Dollar: Risk sentiment offsets data support – MUFG
The post US Dollar: Risk sentiment offsets data support – MUFG appeared on BitcoinEthereumNews.com. MUFG’s strategists note that the US Dollar (USD) has weakened despite solid United States (US) jobs data, as optimism over a potential US/Iran deal and surging US equities support risk appetite. They highlight downside risks to the US economy, scope for Federal Reserve (Fed) easing later this year, and warn that prolonged conflict and energy shocks could eventually limit Dollar selling. Dollar pressured by risk appetite “The US dollar weakened further last week with no resolution to the Middle East conflict in sight. Attacks in the Strait of Hormuz increased but the US maintains the ceasefire remains in place. That has seen oil prices drop over the last week.” “The magnitude of such strong risk appetite is lifting global optimism and encouraging US dollar selling. A strong US jobs report was not enough to trigger US dollar strength. The US Dollar could still see renewed gains and the lon