Global FX Trader: Honeymoon Phase

The report analyzes the weakening US Dollar driven by cooling tech-sector outperformance and Asian currency valuations, while detailing a tactical outlook for JPY, AUD, and EUR.

Key Takeaways

• 1.The US Dollar is weakening due to policy uncertainty, a software sector sell-off reducing US equity outperformance, and strength in Asian currencies.
• 2.JPY's recent strength following the LDP election is viewed as 'too much too soon,' with a return to weakening likely if the BoJ maintains a gradual path.
• 3.AUD forecasts are being raised (to 0.74 in 12 months) based on RBA hawkishness and an expected hike in May.

Table of Contents

• JPY: Too much too soon
• USD: The spark is gone
• AUD: Let me love you
• EUR: More than just a backup
• GBP: Drifting apart
• HUF: Growing closer
• MYR: Can you feel the love?
• The Dollar and the Software Sell-off: Tech Break-(up)?
• Global FX Forecasts
• Return Forecasts & Valuations

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