BENGALURU : Interest rate differentials will dominate sentiment in forex markets over the next three months, a Reuters poll of FX analysts found, placing the U.S. dollar in a unique position to extend its outperformance against its peers.
"The dollar is well placed to repeat what it tends to do," said Paul Meggyesi, head of FX research at JP Morgan in London. But there was considerable uncertainty in financial markets over the new Omicron coronavirus variant that has pushed measures of volatility to levels not seen since the beginning of the year.
While nine chose safe-haven buying, two said search for higher yield, only one analyst picked commodity prices.
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