USD expected to strengthen near term – Danske Bank

Mikael Milhoj, Senior Analyst at Danske Bank, believes the greenback remains well poised to advance further in the next weeks.

Key Quotes

“Risk markets appear to have stabilised after the Trump win but we continue to see volatile price actions in the FX market”.

“USD gained further yesterday with EUR/USD dropping below 1.09 while USD/JPY trades just below the 107 level”.

“As such, we expect USD to strengthen further against EUR and JPY ahead of the FOMC meeting in December, where we expect the Fed to increase the Fed Funds Rate”.

“However, price actions have indeed been volatile and many market participants may have been wrong footed after the US election. Hence, we expect price actions to remain volatile in the near term and sensitive to news about what policy Trump actually intends to lead”.

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