USD: Driven by macro events - Westpac

Tim Riddell, Research Analyst at Westpac suggests that the key focus for USD into next week is the Kansas Fed symposium (25th – 26th) and whether Yellen provides a hawkish tone to counter current loose financial conditions.

Key Quotes

“However, the symposium’s “Fostering a Dynamic Global Economy” title could mean that there is more of a focus upon central banks’ coordination on regulatory control and financial risks and disappoint markets expecting some policy shifts from Yellen (and Draghi).”

“After the symposium, markets will focus upon next week’s NFP release and the travails of the Trump administration. Though Trump’s tirades seem to be having reduced impact, they continue to weigh on USD. The extent to which Trump’s potential initiatives have been unwound could mean that a surprise tax proposal or an early lifting of the debt ceiling might lift the beleaguered USD, but this seems unlikely at present.”