USD still expected to strengthen in the next weeks – Danske Bank

Senior Analyst at Danske Bank Sverre Holbek sees the greenback gathering further traction in the short to medium term.

Key Quotes

“The USD lost further ground yesterday after Trump flagged in an interview with the Wall Street Journal that the dollar is too strong, in part because he thinks China is holding down the value of its currency”.

“We think the market will now look for clues from the Trump administration when the President-elect is inaugurated on Friday. This regards especially economic policy and the size and timing of expansionary fiscal policy and the possible home investment act”.

“We are still looking for a rebound in the USD once the details of the economic policy are revealed, given its impact on growth and relative interest rates versus the euro area”.