Don't sweat central bank FX intervention
Summary
Since May 2020, the U.S. dollar has broadly weakened against most G10 and emerging market currencies. However, some foreign central banks and policymakers have indicated unease in the renewed strength of their respective currencies. Over the past few weeks, some central banks have also directly intervened in FX markets to weaken their currencies, while others have engaged in FX reserve management operations to rebuild external buers. While the immediate market reaction to announced FX measures has been a sello in local currencies, we believe broader market forces will ultimately prevail, and central bank intervention will not be enough to halt the longer-term trend of a weaker U.S. dollar.
Donwload the full report.
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.