9 Mar 2015
USD extends its upside – Danske bank
FXStreet (Edinburgh) - Chief Analyst at Danske Bank Lars Christensen, sees the greenback extending its upbeat momentum.
Key Quotes
“The USD rallied hard on the back of the strong non-farm payroll report. In our view, the Fed will see through the weak wage growth, remove ‘patience’ in the March FOMC meeting and hike rates in June”.
“The USD is the winner and the EUR the main loser as widening US-Eurozone rates spread and FX hedging of European assets continues to unfold”.
“USD strength is also playing out versus Emerging Market (EM) currencies. We expect this trend has further to go as the re-pricing of US rates has yet to occur”.
“The current account (CA) deficit currencies like the BRL, IDR, ZAR and TRY appear particularly vulnerable as US rates rise, much like during the ‘taper tantrum’ in 2013”.
Key Quotes
“The USD rallied hard on the back of the strong non-farm payroll report. In our view, the Fed will see through the weak wage growth, remove ‘patience’ in the March FOMC meeting and hike rates in June”.
“The USD is the winner and the EUR the main loser as widening US-Eurozone rates spread and FX hedging of European assets continues to unfold”.
“USD strength is also playing out versus Emerging Market (EM) currencies. We expect this trend has further to go as the re-pricing of US rates has yet to occur”.
“The current account (CA) deficit currencies like the BRL, IDR, ZAR and TRY appear particularly vulnerable as US rates rise, much like during the ‘taper tantrum’ in 2013”.