Buy the dips in USD – Danske Bank

Mathias Mogensen, Analyst at Danske Bank, sees pullbacks in the dollar as buying opportunities.

Key Quotes

“The broad USD initially weakened following the August non-farm payroll but then strengthened particularly against the JPY but also versus EUR and GBP”.

“This is in line with our view that the USD is a buy-on-dips near term with the uncertainty around the next Fed rate hike lingering”.

“For USD/JPY, we believe that US rate expectations will continue to be the dominant factor. Yes, the Bank of Japan will ease policy again this month but it is unlikely to cut rates – especially not given the latest rally in USD/JPY”.