23 Mar 2015
USD likely to remain stronger in the year ahead – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, shares the key points of Fed’s Lockhart, Evans and US treasury secretary Lew’s speech, and further maintains a bullish outlook on the USD versus the EUR for the year ahead.
Key Quotes
“Atlanta Fed President Lockhart has already spoken on Friday reiterating that “I think lift-off in one of the meetings in June through to September represents appropriate policy given what I can see today”. He added “I have raised my level of concern about a strong US dollar” but that it was a “not game changer” for Fed policy.”
“In contrast, Chicago Fed President Evans remained more dovish still believing that the Fed should wait till next year to begin raising rates. He also spoke on the US dollar stating that US dollar developments are always challenging for the Fed as strictly speaking it’s under the purview of the Treasury, and noting that the Fed will have to assess the implications of a stronger US dollar."
“US Treasury Secretary Lew spoke on Friday and reiterated that “a strong US dollar is good for America, and it reflects a strong US economy”.”
“He also urged European officials to boost demand and stated that if Europe’s growth improves “you’ll see some movement in relative currency values, because our economy won’t be so much stronger on a relative basis”.”
“However with the ECB committed to aggressive balance sheet expansion at least through to September 2016, we remain comfortable that the US dollar is likely to remain stronger in the year ahead.”
Key Quotes
“Atlanta Fed President Lockhart has already spoken on Friday reiterating that “I think lift-off in one of the meetings in June through to September represents appropriate policy given what I can see today”. He added “I have raised my level of concern about a strong US dollar” but that it was a “not game changer” for Fed policy.”
“In contrast, Chicago Fed President Evans remained more dovish still believing that the Fed should wait till next year to begin raising rates. He also spoke on the US dollar stating that US dollar developments are always challenging for the Fed as strictly speaking it’s under the purview of the Treasury, and noting that the Fed will have to assess the implications of a stronger US dollar."
“US Treasury Secretary Lew spoke on Friday and reiterated that “a strong US dollar is good for America, and it reflects a strong US economy”.”
“He also urged European officials to boost demand and stated that if Europe’s growth improves “you’ll see some movement in relative currency values, because our economy won’t be so much stronger on a relative basis”.”
“However with the ECB committed to aggressive balance sheet expansion at least through to September 2016, we remain comfortable that the US dollar is likely to remain stronger in the year ahead.”