Dovish Fed unlikely to derail the run in US dollar - TDS

In a Bloomberg interview earlier today, Mitul Kotecha, Senior Emerging Market Strategist at TD Securities, made upbeat remarks on the US dollar, in light of the recent dovish FOMC.

Key Quotes:

“Dollar unlikely to come under significant pressure.

Data outside of the US still looks pretty weak.

Central banks globally have become increasingly dovish.

Although the Fed is dovish, markets have priced in that sense of dovishness.

Doesn't expect any change in policy in this week's Fed meeting.

Even if Powell sounds more dovish, it isn't going to derail the run in the dollar.

Difficult to short the dollar since it offers the highest carry among G10 currencies.”