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Bloomberg reports that some asset managers expect the dollar to weaken despite the Fed's expected rate hike at its September 26 meeting. BNP Paribas Asset Management sees the broad dollar falling about 10% within six to nine months, and Invesco forecasts a roughly 2% drop against the euro by year-end.
Both are watching for comments on trade tensions.
A weaker dollar would support US commodity prices and lift export competitiveness for soybeans, corn and meal, while raising costs for importers. The forecasts are contrarian views rather than confirmed trends.
bloomberg.comLananh NguyenSep 20, 2018After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
