28 Apr 2015
USD to strengthen towards year-end – Scotiabank
FXStreet (Edinburgh) - In the view of Camilla Sutton, Chief FX Strategist at Scotiabank, the current period of USD weakness could be temporary, with the greenback poised to gain further ground into year-end.
Key Quotes
“The current period of USD weakness appears to be gaining momentum and accordingly likely has further to run”.
“At an index level, DXY support lies at 95.32, which is both the 23.6% retracement of the year long rally as well as the uptrend”.
“Accordingly a test of another 1% in USD weakness is likely in the near‐term”.
“The core risk is tomorrow’s FOMC meeting, where the risk is a more hawkish turn than currently priced in”.
“Over the medium term, we continue to believe that U.S. growth, Fed policy and sentiment will favour a stronger USD into year‐end”.
Key Quotes
“The current period of USD weakness appears to be gaining momentum and accordingly likely has further to run”.
“At an index level, DXY support lies at 95.32, which is both the 23.6% retracement of the year long rally as well as the uptrend”.
“Accordingly a test of another 1% in USD weakness is likely in the near‐term”.
“The core risk is tomorrow’s FOMC meeting, where the risk is a more hawkish turn than currently priced in”.
“Over the medium term, we continue to believe that U.S. growth, Fed policy and sentiment will favour a stronger USD into year‐end”.