28 Apr 2015
USD upward momentum has eased in the near-term – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, argues that although the dismal US economic data has led USD upside momentum to ease in the near-term, the upward trend is far from complete.
Key Quotes
“The foreign exchange market has remained relatively stable in the Asian trading session with the dollar index on course to finish the month modestly weaker bringing an end to nine consecutive months of gains.”
“The US dollar has clearly lost upward momentum in the near-term but we doubt that the upward trend is complete with further gains likely later this year as the Fed moves closer to raising rates.”
“US dollar weakness has been most evident over the past month against currencies of net crude oil exporting countries such as the Russian rouble and Colombian peso which have derived support from the rebound in the price of crude oil. Currencies such as the Brazilian real which were sold heavily earlier this year have also staged more notable rebounds over the past month against the US dollar.”
“The recent loss of economic growth momentum in the US is beginning to weigh more heavily on the US dollar. The latest economic data releases yesterday from the US were again disappointing relative to consensus expectations. The services PMI survey declined by 1.4 point to 57.8 in April although it is still signalling a return to more solid growth.”
Key Quotes
“The foreign exchange market has remained relatively stable in the Asian trading session with the dollar index on course to finish the month modestly weaker bringing an end to nine consecutive months of gains.”
“The US dollar has clearly lost upward momentum in the near-term but we doubt that the upward trend is complete with further gains likely later this year as the Fed moves closer to raising rates.”
“US dollar weakness has been most evident over the past month against currencies of net crude oil exporting countries such as the Russian rouble and Colombian peso which have derived support from the rebound in the price of crude oil. Currencies such as the Brazilian real which were sold heavily earlier this year have also staged more notable rebounds over the past month against the US dollar.”
“The recent loss of economic growth momentum in the US is beginning to weigh more heavily on the US dollar. The latest economic data releases yesterday from the US were again disappointing relative to consensus expectations. The services PMI survey declined by 1.4 point to 57.8 in April although it is still signalling a return to more solid growth.”