Strategy Report

Clashing Forces

29 Jul 2016

by Mathieu Savary, Chief Strategist, Developed Markets ex US & Head of Research Innovation

The U.S. and the global economies are improving. A synchronized upswing normally trumps the Fed in determining the path for the dollar. U.S. inflation expectations are likely to rise relative to the rest of the world, weighing on the dollar. The risks for EUR/USD have risen. We are hedging our long EUR/USD position by shorting the euro on some crosses. Buy CHF/JPY.

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