USD: Negative impact of politics - ANZ

Analysts at ANZ explain that politics has had an outsized negative impact on the USD and this is due to reverse, however the broader environment suggests that the reversal could be more selective. 

Key Quotes

“Monetary policy is playing less of a role in supporting the USD as other central banks shift their biases and as strong global growth and low volatility remain supportive of cyclical currencies.”

“We favour being long the USD against low yielding currencies like the JPY, but think that the broader environment will place a solid floor under cyclical currencies. We favour buying JPY crosses on dips.”