25 Feb 2015
Credit Agricole: Fed deflects dollar demand but for how long – eFXnews
FXStreet (Barcelona) - The eFXnews Team notes Credit Agricole prefers remaining short EUR/USD with market focus now expected to shift to interpreting US data, as signalled by Fed.
Key Quotes
“Now that FX markets have had an opportunity to digest the latest Fed message attention will return to interpreting the data. That interpretation is now slightly easier given the clearer evidence standards defined by the Chairwoman Yellen yesterday.”
“As our US economist says “Fed Chair Yellen's positive comments on labour market conditions suggest that the FOMC believes it will soon approach employment conditions that are consistent with its employment mandate. Progress on the inflation mandate has been delayed, primarily because of lower oil prices”.”
“Fed policy makers have therefore once again successfully avoided triggering a USD rally, but for how long?”
“We remain short EUR/USD.”
This content has been provided under specific arrangement with eFXnews.
Key Quotes
“Now that FX markets have had an opportunity to digest the latest Fed message attention will return to interpreting the data. That interpretation is now slightly easier given the clearer evidence standards defined by the Chairwoman Yellen yesterday.”
“As our US economist says “Fed Chair Yellen's positive comments on labour market conditions suggest that the FOMC believes it will soon approach employment conditions that are consistent with its employment mandate. Progress on the inflation mandate has been delayed, primarily because of lower oil prices”.”
“Fed policy makers have therefore once again successfully avoided triggering a USD rally, but for how long?”
“We remain short EUR/USD.”
This content has been provided under specific arrangement with eFXnews.