The anticipated US dollar downturn materialised over the course of April, with the greenback sustaining losses across the board. This was a byproduct of the Federal Reserve anchoring expectations in the March meeting along with positive vaccine developments in other major DM economies which took the shine off the US economic outperformance. Looking ahead, we expect the dollar downturn to continue over the course of Q2, although we argue that most major catalysts over the next month have now been baked into current pricing, meaning a stabilisation in the US dollar could occur in the near-term. Currencies like JPY and ZAR may buck the general trend for idiosyncratic reasons, however.
This information has been prepared by Monex Europe Limited, an execution-only service provider. The material is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is, or should be considered to be, financial, investment or other advice on which reliance should be placed. No representation or warranty is given as to the accuracy or completeness of this information. No opinion given in the material constitutes a recommendation by Monex Europe Limited or the author that any particular transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, it is not subject to any prohibition on dealing ahead of the dissemination of investment research and as such is considered to be a marketing communication.