MUFG info via eFX

  • "The broadly favourable outlook for the US dollar remains in place in our view despite the first signs of weaker inflation evident in the US CPI data released this week. While this data may prove important it will need further corroboration before it can prove meaningful. In the meantime, the Fed will have to persist with hawkish rhetoric given how late the Fed was to commence tightening and given the inflation data this week was just one month. Another jobs and CPI report will be released before the September FOMC and hence we can't yet rule out another 75bp rate hike," MUFG notes.
  • "We expect the 2s10s yield curve to invert further and the extent of yield curve inversion in the past has been an important factor for the performance of the dollar. With risks globally still negative, especially in Europe, it remains most likely that the US dollar will strengthen further," MUFG adds.
usdcad 15 August 2022 daily chart

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