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00:02FX strategists surveyed by Reuters expect the U.S. dollar to remain range-bound in the near term
00:07before weakening later this year, driven by optimism that the Middle East conflict will
00:11end soon and its inflation impact will be temporary. The dollar has risen about 2%
00:15since the conflict began three months ago, leaving traders net long. Brent crude is more
00:19than 35% higher, pushing U.S. inflation to 3.8% and Eurozone inflation to 3.2%,
00:24above the Fed's 2% targets. Treasury yields have climbed and rate futures now point to a
00:29prolonged Fed hold or even a hike by year-end. The Reuters poll showed the Euro rising to $1.18
00:34in three months and $1.20 in a year. Associated General's chief FX strategist says the dollar
00:39is weakening due to optimistic markets, expectations that the Middle East conflict will end, and bets
00:43that the Fed won't tighten policy, though he expects any weakness to be short-lived. Of 40 strategists
00:48surveyed, 21 expect little change in dollar positioning by the end of June. For all things
00:52money, visit Benzinga.com.
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