11 Jun 2015
USD appears well supported near term – Westpac
FXStreet (Edinburgh) - Richard Franulovich, Strategist at Westpac, sees the greenback picking up pace in the near term.
Key Quotes
“The cadence of the US data has improved greatly in recent weeks yet USD price action is far from convincing”.
“The FOMC meeting next week should help “right the USD ship” however”.
“Sep FOMC lift off expectations should ultimately firm (OIS pricing in a 50% chance)”.
“The dot plot is unlikely to be the USD negative it was back in March – they signal a bare two hikes this year, leaving little to no room for further reductions”.
“The USD index should hold 94.00. Greek tail risk seems underpriced. That and downside risks to the German ZEW survey next week are all likely to support the
USD too”.
Key Quotes
“The cadence of the US data has improved greatly in recent weeks yet USD price action is far from convincing”.
“The FOMC meeting next week should help “right the USD ship” however”.
“Sep FOMC lift off expectations should ultimately firm (OIS pricing in a 50% chance)”.
“The dot plot is unlikely to be the USD negative it was back in March – they signal a bare two hikes this year, leaving little to no room for further reductions”.
“The USD index should hold 94.00. Greek tail risk seems underpriced. That and downside risks to the German ZEW survey next week are all likely to support the
USD too”.