29 Apr 2015
Further USD weakness on the cards? – Westpac
FXStreet (Edinburgh) - According to strategists at Westpac, further downside pressure lies ahead for the US dollar.
Key Quotes
“The USD index is now threatening to break its broad 96-100 range”.
“This week’s data and Fed event risk if anything tilt the risks for the USD to the downside, with the relentless run of weaker data portraying a weaker economy than consensus at 1.0% for Q1 advance GDP (note the Atlanta Fed nowcast is 0.1%) and forecasters also looking for a higher ISM even though the new orders detail of the already released regional surveys (Philly and Empire) have all been a touch weaker”.
“The long term USD prognosis remains positive but it seems near term air-pockets will keep it capped for a few more weeks yet”.
“A clear break of 96 could get messy for a while but its heavy weighting for EUR should ultimately steady the index”.
“Numerically significant resistance at 100.00 is unlikely to be retested in the coming weeks. Further multi-week downside correction risk”.
Key Quotes
“The USD index is now threatening to break its broad 96-100 range”.
“This week’s data and Fed event risk if anything tilt the risks for the USD to the downside, with the relentless run of weaker data portraying a weaker economy than consensus at 1.0% for Q1 advance GDP (note the Atlanta Fed nowcast is 0.1%) and forecasters also looking for a higher ISM even though the new orders detail of the already released regional surveys (Philly and Empire) have all been a touch weaker”.
“The long term USD prognosis remains positive but it seems near term air-pockets will keep it capped for a few more weeks yet”.
“A clear break of 96 could get messy for a while but its heavy weighting for EUR should ultimately steady the index”.
“Numerically significant resistance at 100.00 is unlikely to be retested in the coming weeks. Further multi-week downside correction risk”.