Cross trades more attractive than USD trades in the short-term – Scotiabank

FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, comments on the post FOMC affect on the USD.

Key Quotes

“Over the last week the USD is broadly lower, having lost ground against all the primary currencies.”

“The shift in the Fed’s tone warns of a renewed period of range trading, with currencies likely to trade comfortably within their two month ranges, waiting for a catalyst significant enough to shift the outlook for the major central banks.”

“Accordingly this decreases the attractiveness of short‐term USD trades and increases the attractiveness of cross trades.”