Strength in USD unsustainable; Crude Oil Prices Recover after Selloff

10 July 2017 10 July 2017

BeatricePinckney

Although US dollar bounded back following the strong payrolls report last Friday, we refrained from being overoptimistic over its outlook in the medium-term. June marked the hawkish turns of several major central banks (including ECB, BOC and BOE), sending their respective currencies higher against US dollar. Note, however, that sterling was an exception as the market remained concerned over the uncertainty of Brexit negotiation, together with recent disappointing dataflow.