Political uncertainty could limit USD upside potential – Commerzbank

By FXStreet In the coming week, the focus will be on several economic data releases from the eurozone and the USA, as they could give a final hint at the next steps by the ECB and the Fed in March, according to Thu Lan Nguyen, analyst at Commerzbank.” In the US, a continuation of the slight uptrend of prices and wages should support the USD. That said, political uncertainty could rise significantly after ‘Super Tuesday’, which in turn would limit the upside potential of the USD”

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“Uncertainty about the next steps of the ECB and Fed remains high. While the market estimation has probably hardly changed of late, and EUR/USD has therefore been trading sideways around the 1.10 mark for some days, key growth and inflation data will be published in the coming week, which could cause swings in one direction or the other ahead of the next ECB and Fed meetings.”

“US figures on the core PCE rate and the labour market should give a tailwind to the US dollar over the euro. Indeed, if the latest moderate upward trend in the rate price and wage inflation continues, the market should also start to bet more on a continuation of the …read more

Source:: FX Street