The ECB and UK MPC backed dovish policies. Though when there is a dove there is usually a hawk lingering somewhere. Or we can perhaps call it an Eagle given the American nature of the hawk. The US has clearly moved away from dovish rhetoric. It is simple Maths. Yield differentials warn of a meaningfully weaker GBPUSD and EURUSD. What then of the other USD pairs? Well, the US has fled the currency war in general.
This is the state of affairs. Higher US yields and a higher USD.
By Chartonomist
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