Peter Kinsella, UBP’s Global Head of FX and Commodity Strategy, discussed the outlook for the USD with Andreas Koenig, Amundi’s Head of Currency Management.
In the latest episode of Forex Focus, they look at the correlation changes that markets have seen over the last month, arguing that a regime shift is under way in terms of asset allocation assumptions for the greenback. These changes are likely to have significant implications for asset allocators, who have long relied on the dollar’s stabilising effect in global portfolios.
While the short USD narrative is now a consensual view, market positioning is by no means uniform. Over the longer term, a EUR/USD upward move to levels of around 1.25 seems eminently feasible.
