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FX Trends : When FX markets price little policy uncertainty…

28 Feb 2024

Key takeaways

  • The USD no longer exhibits a premium amid trade policy uncertainty.
  • But this creates asymmetric USD upside around upcoming tariff deadlines.
  • The CAD and EUR look vulnerable to renewed concerns about US trade policy.

Our tactical view

Table of tactical views where a currency pair is referenced (e.g. USD/JPY):An up (⬆) / down (⬇) / sideways (➡) arrow indicates that the first currency quotedin the pair is expected by HSBC Global Research to appreciate/depreciate/track sideways against the second currency quoted over the coming weeks. For example, an up arrow against EUR/USD means that the EUR is expected to appreciate against the USD over the coming weeks. The arrows under the “current” represent our current views, while those under “previous” represent our views in the last month’s report.

Explanation of terms

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