US dollar to still strengthen in near-term despite Fed rate cuts - RBC

In the view of Daria Parkhomenk, FX strategist at Royal Bank of Canada (RBC), expresses her take on the US dollar following the dovish testimony’s by Fed Chair Powell delivered on Wednesday.

Key Quotes:

"Although our US economists have penciled in a total of 50 bps of rate cuts for 2019, this does not change our near-term view for moderate USD gains within the G-10 space.

The USD would remain as G-10's highest yielder and that should lend support to the USD in a low volatility/carry-obsessed world."