Macro: It’s all about elections and keeping status quo
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
Head of FX Strategy
Summary: Goldilocks continues, but dollar downside remains supported on US exceptionalism as we expected in the Q1 outlook. Geopolitical and earnings risks could take a bigger focus this week and keep the dollar supported, absent any significant dovish FOMC surprise. EUR’s underperformance could remain hard to reverse, and markets will be sensitive to a less hawkish BOE outcome or a miss in Aussie Q4 CPI.
Other recent Macro/FX articles:
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