Flash: USD theme still intact? – UBS

FXstreet.com (New York) – FX investors have generally embraced the stronger USD theme in recent months while keeping a wary eye on rising US yields − after all if financial conditions tighten too much that could stop the dollar’s advance in its tracks, notes Research Analyst Gareth Berry at UBS.

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Now, not one, but two US economic reports have disappointed in quick succession. First, new home sales on Friday plunged m/m, and Monday’s durable goods orders came in soft too.

Could this be evidence that tighter financial conditions are already having a detrimental impact? Perhaps, “but our economics are not overly …read more