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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Free AccessDanske - In the immediate aftermath of the....>
FOREX: Danske - In the immediate aftermath of the FOMC meeting last week, we
argued that the near-term outlook of low vols/attractive USD carry-to-risk
favoured USD longs going into August as long as we did not get (1) significant
short-term deterioration in US data, (2) a complete breakdown in US-China trade
talks and/or (3) a hefty equity sell-off. From that perspective, Trump's
surprise reescalation of the trade war on Thursday has raised the risk of (2),
which indeed has driven a setback in the USD with EUR/USD back at 1.11. However,
the potential for (3) remains limited by markets pricing in Fed easing on the
higher risk of (2), which limits the near-term EUR/USD upside potential in our
view, as carry-to-risk still heavily favours the USD. In today's session we will
get more clarity on (1) but we expect the US service sector to remain healthy,
which on a lack of other news could drive a slightly stronger greenback in
today's session.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.