25 May 2015
USD poised for further upside – BTMU
FXStreet (Edinburgh) - Currency Analyst Lee Hardman at BTMU sees further upside in the greenback will hinge on the performance of the US economy.
Key Quotes
“The resilience of the US labour market highlights as well that economic weakness so far this year likely exaggerates the underlying strength of the US economy”.
“The latest non-farm payrolls report revealed that the US economy added 775k jobs in the first four months of this year. The rebound in employment growth in April after the slowdown in March has provided reassurance that employment growth is likely to remain solid this year with weakness in March likely a blip”.
“The combination of solid employment growth, strengthening wage growth, and low inflation should remain supportive for a pick-up in personal consumption later this year”.
“The US dollar should also continue to derive support from negative developments overseas which have been the main driver of US dollar strength since the middle of last year”.
“The economic recovery in the US remains at a more advanced stage than in other major economies, and other major central banks are still likely to lag well behind the Fed in raising rates even if they delay raising rates until later this year”.
Key Quotes
“The resilience of the US labour market highlights as well that economic weakness so far this year likely exaggerates the underlying strength of the US economy”.
“The latest non-farm payrolls report revealed that the US economy added 775k jobs in the first four months of this year. The rebound in employment growth in April after the slowdown in March has provided reassurance that employment growth is likely to remain solid this year with weakness in March likely a blip”.
“The combination of solid employment growth, strengthening wage growth, and low inflation should remain supportive for a pick-up in personal consumption later this year”.
“The US dollar should also continue to derive support from negative developments overseas which have been the main driver of US dollar strength since the middle of last year”.
“The economic recovery in the US remains at a more advanced stage than in other major economies, and other major central banks are still likely to lag well behind the Fed in raising rates even if they delay raising rates until later this year”.