29 Apr 2015
Weakness in the greenback is a buy - ANZ
FXStreet (Guatemala) - Analysts at ANZ Bank offered an overview of the current conditions in the FX space.
Key Quotes:
"Currencies have benefitted from easing in China as well as a pushback in Fed tightening expectations. Some key technical levels have been broken."
"While it is too early to entirely capitulate on the Fed hiking in June, markets will remain hypersensitive to the US data pulse."
"Some further easing, and even some limited QE, may be forthcoming in China, although it is likely to have progressively fewer international spill-overs."
"Currencies will further benefit if the Fed remains on hold into H2 2015. Medium term, however, we doubt such a move will persist."
"A genuine growth scare, with a global tinge, would seem almost inevitable in that environment, and the US trade balance would likely continue to improve. This continues to suggest that any sustained weakness in the USD presents a medium-term buying opportunity."
Key Quotes:
"Currencies have benefitted from easing in China as well as a pushback in Fed tightening expectations. Some key technical levels have been broken."
"While it is too early to entirely capitulate on the Fed hiking in June, markets will remain hypersensitive to the US data pulse."
"Some further easing, and even some limited QE, may be forthcoming in China, although it is likely to have progressively fewer international spill-overs."
"Currencies will further benefit if the Fed remains on hold into H2 2015. Medium term, however, we doubt such a move will persist."
"A genuine growth scare, with a global tinge, would seem almost inevitable in that environment, and the US trade balance would likely continue to improve. This continues to suggest that any sustained weakness in the USD presents a medium-term buying opportunity."