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The post US Dollar: Risk sentiment offsets data support – MUFG appeared on BitcoinEthereumNews.com. MUFG’s strategists note that the US Dollar (USD) has weakened despite solid United States (US) jobs data, as optimism over a potential US/Iran deal and surging US equities support risk appetite. They highlight downside risks to the US economy, scope for Federal Reserve (Fed) easing later this year, and warn that prolonged conflict and energy shocks could eventually limit Dollar selling. Dollar pressured by risk appetite “The US dollar weakened further last week with no resolution to the Middle East conflict in sight. Attacks in the Strait of Hormuz increased but the US maintains the ceasefire remains in place. That has seen oil prices drop over the last week.” “The magnitude of such strong risk appetite is lifting global optimism and encouraging US dollar selling. A strong US jobs report was not enough to trigger US dollar strength. The US Dollar could still see renewed gains and the lon

The post Swedish Krona: Dovish Riksbank weighs on currency – MUFG appeared on BitcoinEthereumNews.com. MUFG analysts argue that the Swedish Krona is underperforming as the Riksbank, central bank of Sweden, stays cautious despite the energy shock. With inflation soft and policy described as a “good initial position”, they see little chance of a near-term hike, and note that even optimism on a US/Iran deal has not yet sparked a meaningful Swedish Krona (SEK) rebound. Soft inflation keeps Riksbank patient “In contrast, the Riksbank in Sweden is not in a rush to follow the Norges Bank in raising rates. Recent weaker growth and softer inflation have given the Riksbank greater scope to look through the energy price shock. The latest CPI report showed headline inflation falling into negative territory in April, while core inflation (CPIF excluding energy) remained flat.” “These developments have provided the Riksbank with leeway to signal that the current policy rate offers a “good initial po