13 Jan 2015
Soft commodities undermining USD – JPM
FXStreet (Barcelona) - The J.P.Morgan Team explain that soft commodities are undermining the dollar, and hence DXY might consolidate, ahead of the European risk events.
Key Quotes
“Weak commodities are now partially undermining the dollar through too-low inflation and falling yields, but we think consolidation in the index is more likely than a trend reversal, especially ahead of European event risks like the Jan 22 ECB meeting and Jan 25 Greek elections. Still, to hedge the possibility that US yields fall further due to weaker oil prices, we sell USD/CNY, EUR/JPY and NOK/JPY…”
“Keep core long USD positions versus GBP, AUD, NZD and EUR.”
Key Quotes
“Weak commodities are now partially undermining the dollar through too-low inflation and falling yields, but we think consolidation in the index is more likely than a trend reversal, especially ahead of European event risks like the Jan 22 ECB meeting and Jan 25 Greek elections. Still, to hedge the possibility that US yields fall further due to weaker oil prices, we sell USD/CNY, EUR/JPY and NOK/JPY…”
“Keep core long USD positions versus GBP, AUD, NZD and EUR.”