USD: July FOMC Was More Of An Excuse Than A Reason To Sell; What’s Next? – Credit Agricole

Credit Agricole CIB FX Strategy Research suspects that the July FOMC statement was more of an excuse than a reason to push the USD lower.

"Technical factors likely played a role as the EUR/USD rallied through the previous highs of 1.1712 and AUD/USD broke the psychologically important 0.80 level. It is also possible that while overall positioning indicators are pointing to USD shorts, some of these positions had been reduced during the USD bounce earlier this week," CACIB argues.

Overall, CACIB notes that while the USD has few friends at the moment, it could recover some losses on the release of the first estimate of US Q2 GDP on Friday which CACIB expects to come in at +2.4% QoQ.

Source: Credit Agricole CIB ResearchOriginal Article