Brexit politics to guide Sterling, USD rally could be overdone – Rabobank

The Dollar index trading is trading at the highest level since April 2003… Need we say more to explain the crazy action in the forex markets seen over the last three weeks?

But the question that bothers everyone is whether the spike in the greenback sustainable? Is it backed by solid fundamentals or ‘irrational exuberance’?

It has been a wild year for the British Pound as well. Surprisingly, it has held up well in the face of the recent US dollar rally. What’s in store for the GBP/USD and EUR/GBP pair?

To address these questions, we talked to Jane Foley, who is a Senior FX Strategist at Rabobank. Watch the full segment to find the answers for the pressing questions mentioned above. The segment is hosted by Tip TV’s Zak Mir. Foley believes the USD rally could be overdone and the Trump Bump could end up being the upgraded version of ‘Abenomics’. She adds, the British Pound is likely to be guided by the Brexit politics. Foley also presents a bearish view on the EUR.

#Forex, #currencies, #trading, #GBP/USD, #EUR/GBP, #EUR/USD, #Brexit, #politics, #economy, #indicators, #wages, #bonds, #yields