USD mixed after data, trade – Danske Bank

Valtteri Ahti, Chief Strategist at Danske Bank, assessed the recent events and the impact on the greenback.

Key Quotes

“Friday’s US jobs report was a good one for risk sentiment but for USD it was a mixed bag: on the one hand, inflation is missing, which leaves the Fed in no hurry to get more hawkish; on the other, jobs growth is good, i.e. no clear direction for the USD on the back of this”.

“This week, we expect the focus in majors to continue to be on retaliation measures from the EU and China notably and, in our base case, that protectionist measures are done on a case-by-case basis (and not a full-blown trade war), we still deem that this is situation is going to weigh on USD”.