The Weekly FX Navigator (27 Apr 2021): The USD smirks

27/04/2021 3 min
The Weekly FX Navigator (27 Apr 2021): The USD smirks

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Episode Synopsis

Regular readers of our publications will be aware of our interest in the “USD smirk” framework, which is a slight tweak on the traditional “USD smile”. The smile describes how the USD usually outperforms in a risk-off environment – when there is a shortage of global USD liquidity – or when US growth outpaces the rest of the world and US yields rise. We believe the USD ‘smirk’ is increasingly relevant today, supporting our view of USD weakness in the coming 12 months.Speaker: DJ Cheong, Investment Strategist, Standard Chartered Bank