00:00We've seen the dollar off, Sonia, about 10, 11 percent from its highs in 2022, although over the last few weeks we've seen a little bit of dollar strength judging by the BBDXY.
00:14Do we get to resume then the downward move in the dollar if the Fed is in rate cut mode?
00:22Well, I mean, you've seen the reaction to Jackson Hole. The dollar has lost some ground.
00:26We're back around 117. So the sort of readjustment of rate cut expectation has now been priced in.
00:33So to that extent, I would say, you know, a lot of the news has been digested already.
00:37I think the dollar in general, I mean, it's very easy to be bearish on the dollar with everything that's happening in the U.S.
00:43And certainly, you know, Trump's bat with the Fed ranks high on the list of many uncertainties the dollar faces.
00:50I think it's a bit more difficult to be bullish on the euro.
00:53I mean, it's one thing to be bearish dollar, but the question for euro dollar is not just that one side of that equation.
00:58We have to look at Europe as well.
01:00And I think while the numbers this morning were a bit better than expected, the overall tenor right now tone here is rather soft on growth.
01:08There's expectations for 2026, but these have yet to materialize.
01:12So, you know, we have a 120 forecast for euro dollar, which is moderate from current levels.
01:16But I think a lot of the news has already been priced in and there isn't that much positive surprise potential, I think, from the eurozone right now.
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