Here's the NAB's outlook for currency markets in 140 characters or less

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If you’re wondering what the future holds for currency markets but don’t have the time to read endless analyst reports, you may find the table below from the National Australia Bank (NAB) of interest.

Source: NAB

It’s the NAB’s “FX views in a tweet”, providing the time-poor its commentary on how individual currencies are likely to perform against the greenback in 140 characters or less.

Yes, forget the need to use 280 characters — the NAB still only needs Twitter’s original character limit to get its point across.

Near-term, it expects FX movements to reflect ongoing concerns about the potential for trade tensions between the US and China to dictate market direction.

However, longer-term, it says that recent stability in the greenback is unlikely to last, predicting that it will soon resume its downtrend in the months ahead.

“It’s almost eight weeks since the US dollar index made its lowest levels since starting to fall from grace in early 2017. This begs the question whether it is successfully forming a base from which a more significant recovery can ensue,” the NAB says.

“We’re sceptical.

“We continue to believe that the challenges in funding sharply rising US ‘twin deficits’ in coming years will necessitate further US dollar weakness of between 5% and 10% on our current forecasts through 2020.”

NOW READ: Westpac explains why the US dollar is getting beaten up

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