27 Apr 2015
USD: Bulls dropping away as current quarter raising concerns - BTMU
FXStreet (Guatemala) - Analysts at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained that the US dollar is trading on a softer footing in the near-term although still continuing consolidating at higher levels.
Key Quotes:
"There has been little clear evidence yet that the US economy is rebounding strongly following the weak start to the year which is resulting in the US dollar trading on softer footing for now."
"If the US economy does not begin to rebound strongly in the current quarter it would raise concerns that the economic slowdown is more than just temporary driven by bad weather and port disruptions from earlier this year."
"We continue to expect the economy to rebound in the coming months helping to support the US dollar. However, if the US economy disappoints our expectations for a return to stronger growth it will increase downside risks for the US dollar and could result in a correction lower or longer period of consolidation."
"The release of the Q1 GDP report is expected to confirm that the US economy slowed sharply early this year expanding by annualized rate of around 1.0%. The Fed is likely to acknowledge the recent signs of economic weakness at their latest FOMC meeting but remain confident that the slowdown is likely temporary."
"The two events pose some modest downside risk for the US dollar. However, the US dollar could derive some support from the release of the latest employment cost index for Q1 which is expected to confirm that salary growth is running at a faster rate."
Key Quotes:
"There has been little clear evidence yet that the US economy is rebounding strongly following the weak start to the year which is resulting in the US dollar trading on softer footing for now."
"If the US economy does not begin to rebound strongly in the current quarter it would raise concerns that the economic slowdown is more than just temporary driven by bad weather and port disruptions from earlier this year."
"We continue to expect the economy to rebound in the coming months helping to support the US dollar. However, if the US economy disappoints our expectations for a return to stronger growth it will increase downside risks for the US dollar and could result in a correction lower or longer period of consolidation."
"The release of the Q1 GDP report is expected to confirm that the US economy slowed sharply early this year expanding by annualized rate of around 1.0%. The Fed is likely to acknowledge the recent signs of economic weakness at their latest FOMC meeting but remain confident that the slowdown is likely temporary."
"The two events pose some modest downside risk for the US dollar. However, the US dollar could derive some support from the release of the latest employment cost index for Q1 which is expected to confirm that salary growth is running at a faster rate."