BTMU FX Strategy Research notes that the USD has been undermined by further verbal intervention from President Trump who again displayed concern that it is too strong.
"It fits with our view that the US dollar is already significantly overvalued according to our long-term valuation models which is helping to dampen the scope for further upside," BTMU adds.
However, BTMU also argues that verbal intervention on its own is unlikely to prompt a sustainable reversal of US dollar strength unless backed up fundamental drivers as well.
"As we have seen over the last six years, the dovish leanings of Fed Chair Yellen have not been able to prevent the US dollar from strengthening sharply," BTMU notes.
EUR/USD is trading circa 1.0619 and USD/JPY is trdaing circa 109.27 as of writing.
Source: BTMU ResearchOriginal Article
