USD downside risks as Washington hits USD sentiment again
Derek Halpenny, Head of Research Global Markets EMEA & International Securities sits down with Shan Husain in FI FX Sales to discuss the fallout for the US dollar following the US Treasury announcement of increase UST bond buybacks on Wednesday. The dollar drop over the four weeks covering Japan/US FX intervention is the largest since the period following the Liberation Day announcements last year. Washington policy has again undermined confidence and depressing bond yields brings USD downside risks. However, it might not be one-way traffic given the US-Iran risk persists and higher energy prices could discourage foreign currency buying.