VOT Research Desk
Today’s major prediction from the currency experts at Deutsche Bank is that the US dollar has peaked. There, analysts contend that the newsflow from Thursday and Friday marked a top for the US dollar and was considerably unfavorable.
This year’s reasons for the dollar’s strength were.,Fed raising China’s relentless pursuit of COV 0,Russia-Ukraine conflict,Positive progress was made last week on all of those fronts thanks to the US inflation report, blatant indications that China was moving toward a living with coal paradigm, and Russia’s withdrawal from Kherson.
The dangers are not eliminated, according to Deutsche Bank, but they are the catalyst for closing a busy USD-long trade.
None of the aforementioned developments signal an end to risks related to geopolitics and global inflation. But they do, according to FX strategist George Saravelos, create a spectacular simultaneous compression of the risk premium that has driven dollar strength throughout this year.
He muses over whether the dollar will reach a V-shaped or L-shaped peak but decides to hold off on answering until next week, when Deutsche Bank will publish its 2023 currency forecasts.
