USD: The Sum of All Fears

The USD has weakened on labor market concerns and potential Chinese reduction of UST exposure, while the CHF and NOK show relative strength. CA-CIB believes much of the bearish USD outlook is already priced in.

Key Takeaways

• 1.The USD has softened due to fears surrounding the US labour market and reports of Chinese officials encouraging local banks to reduce UST exposure.
• 2.The CHF remains resilient with EUR/CHF hitting new lows sub-0.9130 despite a lack of obvious catalysts and limited SNB verbal intervention.
• 3.The NOK is benefiting from global risk appetite and a strong Q425 GDP print, with sticky inflation expectations potentially delaying rate cuts.

Table of Contents

• Asia overnight
• USD: the sum of all fears
• CHF: relentless
• NOK: inflated?
• Open trade recommendations
• Key events
• Red Mount Analytics
• Our new interactive data website features
• Global Markets Research contact details
• Certification
• Disclaimer

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