19 Feb 2015
Yellen’s testimony to right the USD ship – Westpac
FXStreet (Barcelona) - Richard Franulovich of Westpac, notes that with FOMC minutes having squashed rate hike expectations from the Fed, Yellen’s testimony ahead should clear the air surrounding the lift-off and boost strength in the USD.
Key Quotes
“The FOMC minutes have muddied the waters around Fed lift off with “many inclined to stay at zero rates for longer”.”
“Fed Chair Yellen’s testimony should however clear the air, accentuate the positives and cement expectations that a mid-year lift off remains in play.”
“Since the late Jan Fed meeting payrolls showed a net gain of 400k jobs including revisions and we have seen a bunch of central bank easings across the globe, a development that will alleviate Fed concerns on the international front.”
“USD upside momentum has stalled but suspect a probable “not as dovish as expected” Yellen testimony will right the USD ship. USD index should not trade much below 93.20 support, if at all.”
“One cautionary note, as highlighted in recent weeks the complexion of the US data (mostly business surveys) has cooled while the Eurozone PMIs are beginning to stir, albeit from very depressed levels. Next week’s US and Eurozone business surveys should see a continuation of that trend.”
Key Quotes
“The FOMC minutes have muddied the waters around Fed lift off with “many inclined to stay at zero rates for longer”.”
“Fed Chair Yellen’s testimony should however clear the air, accentuate the positives and cement expectations that a mid-year lift off remains in play.”
“Since the late Jan Fed meeting payrolls showed a net gain of 400k jobs including revisions and we have seen a bunch of central bank easings across the globe, a development that will alleviate Fed concerns on the international front.”
“USD upside momentum has stalled but suspect a probable “not as dovish as expected” Yellen testimony will right the USD ship. USD index should not trade much below 93.20 support, if at all.”
“One cautionary note, as highlighted in recent weeks the complexion of the US data (mostly business surveys) has cooled while the Eurozone PMIs are beginning to stir, albeit from very depressed levels. Next week’s US and Eurozone business surveys should see a continuation of that trend.”