US dollar to fall further if trade uncertainty remains post-G7 meet – Societe Generale

In the latest client note, Kyosuke Suzuki, Societe Generale’s Head of FX and Money market sales in Tokyo, expressed his take on the US dollar outlook following the G7 meeting.

Key Quotes:

“Dollar is under pressure as trade frictions appear to be escalating.

The market is having difficulty deciding how it can be resolved in G7 summit.

There is a clear conflict between US and other economies.

Hard to predict how they will finalize the communique.

If uncertainty over trade remains after G7 meeting, dollar my fall further.

Market likely to continue to focus on trade with US-China talks on 15 June.

USD/JPY downside may be limited around 109, strong resistance around 110.60-70.”