Dollar to Now Outperform Euro: Credit Agricole

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US Dollar to Outperform the Euro

With a good number of analysts becoming wary of chasing the Pound lower at this juncture, dollar outperformance could shift to the euro. Credit Agricole write:

We remain broadly bullish on the USD, as the dollar should benefit from both its traditional safe haven credentials as well as an attractive growth profile, at least by the low standards of many other G10 economies.

With most of the USD gains against the GBP already in place, we are shifting our focus towards potential USD outperformance versus the EUR, which faces significant EU political and banking sector headline risk, as well as the commodity-bloc currencies that are only starting to feel the negative global economic repercussions of Brexit.

The week ahead will be light in terms of US economic data until the June retail sales report on Friday.