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9 Apr 2015
USD pullbacks appear limited – Westpac
FXStreet (Edinburgh) - In the opinion of Sean Callow, Strategist at Westpac, retracements in the greenback could be limited towards H2 2015.
Key Quotes
“The sharp deceleration in job creation in Mar and downward revisions help narrow the gap between obvious weakness in activity in Q1 and what was booming job creation”.
“It is clear that Q1 was a very soft quarter. Optimism is largely intact for growth in Q2 and beyond but with only limited data on Q2 available by the 16-17 Jun FOMC meeting, it is hard to see why the Fed would tighten as soon as then”.
“Underlying confidence in US growth outperformance and in a Fed hike some time in H2 should limit DXY downside”.
“But shorter term, data flow should undermine the dollar as hefty long positions are trimmed”.
Key Quotes
“The sharp deceleration in job creation in Mar and downward revisions help narrow the gap between obvious weakness in activity in Q1 and what was booming job creation”.
“It is clear that Q1 was a very soft quarter. Optimism is largely intact for growth in Q2 and beyond but with only limited data on Q2 available by the 16-17 Jun FOMC meeting, it is hard to see why the Fed would tighten as soon as then”.
“Underlying confidence in US growth outperformance and in a Fed hike some time in H2 should limit DXY downside”.
“But shorter term, data flow should undermine the dollar as hefty long positions are trimmed”.