Back
4 Jun 2015
USD dips remain a buy – Westpac
FXStreet (Barcelona) - Richard Franulovich of Westpac, explains that the decent payrolls and retail sales data ahead in the US will give boost to September rate hike expectations and the dollar.
Key Quotes
“The renewed surge in bund yields has checked the USD’s advance but we assume a likely decent US payrolls later this week along with a probable beat for retail sales next week, in line with the more constructive signals from our US data surprise index, should stabilise the USD and give Sep Fed rate hike odds a boost.”
“Against that, negotiations between Greece and its creditors increasingly suggest that a market friendly outcome for Greece is in the offing, though that appears to be increasingly priced in and as history has shown is unlikely to prompt anything more than a short-lived EUR bounce. Any pullback in the USD should be bought.”
Key Quotes
“The renewed surge in bund yields has checked the USD’s advance but we assume a likely decent US payrolls later this week along with a probable beat for retail sales next week, in line with the more constructive signals from our US data surprise index, should stabilise the USD and give Sep Fed rate hike odds a boost.”
“Against that, negotiations between Greece and its creditors increasingly suggest that a market friendly outcome for Greece is in the offing, though that appears to be increasingly priced in and as history has shown is unlikely to prompt anything more than a short-lived EUR bounce. Any pullback in the USD should be bought.”