29 Apr 2015
USD dollar expected to resume the up trend – Danske Bank
FXStreet (Edinburgh) - In the view of Chief Analyst at Danske Bank Lars Christensen, the greenback would be poise to resume its upside.
Key Quotes
“We still see potential for renewed USD buying in particular on the back of tonight’s FOMC meeting where we believe that the FOMC will downplay the recent weakness in US data signalling that this was primarily driven by temporary factors”.
“Moreover, the committee will likely also note that inflation has stabilised lately, which in our view should reinforce market’s rate hike expectations”.
“Finally, we are now past end of month in FX spot trading and thus, if the turn effect has played a role in the past days’ USD sell-off, it should be gone now”.
Key Quotes
“We still see potential for renewed USD buying in particular on the back of tonight’s FOMC meeting where we believe that the FOMC will downplay the recent weakness in US data signalling that this was primarily driven by temporary factors”.
“Moreover, the committee will likely also note that inflation has stabilised lately, which in our view should reinforce market’s rate hike expectations”.
“Finally, we are now past end of month in FX spot trading and thus, if the turn effect has played a role in the past days’ USD sell-off, it should be gone now”.