17 Mar 2015
Weak US data has only modest negative impact on US dollar – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, comments that with US data repeatedly printing a weaker picture for the economy, it has failed to dampen the dollar’s upward momentum.
Key Quotes
“The US dollar has remained modestly weaker in the Asian trading session with the dollar index consolidating at least temporarily below resistance at the 100-level ahead of tomorrow’s FOMC meeting.”
“The US dollar has weakened modestly following the release yesterday of further economic data signalling that the US economy has lost upward momentum in Q1. It was revealed yesterday that manufacturing output contracted for the third consecutive month in February. At the current juncture the loss of economic growth momentum in Q1 is still likely to be viewed by the Fed as only temporary undermined by the unusually bad seasonal weather with a return to more solid growth likely through the rest of the year.”
“US economic data releases have been disappointing consensus expectations since late January but have failed to dampen the US dollar’s upward momentum.”
“Weak economic growth and looser monetary policy overseas is continuing to support a stronger US dollar.”
“US Treasury Secretary Lew is scheduled to testify today on the international financial system before the House committee. Any comments regarding the strength of the US dollar will be watched closely by the market. US Treasury Secretary Lew has previously stated in January that “I’m going to repeat what I and all my predecessors have always said, which is a strong US dollar is good for America” and that its strength is a reflection that the US economy is “performing quite well”.”
“At the current juncture we would not expect US Treasury Secretary Lew to change rhetoric regarding the US dollar.”
Key Quotes
“The US dollar has remained modestly weaker in the Asian trading session with the dollar index consolidating at least temporarily below resistance at the 100-level ahead of tomorrow’s FOMC meeting.”
“The US dollar has weakened modestly following the release yesterday of further economic data signalling that the US economy has lost upward momentum in Q1. It was revealed yesterday that manufacturing output contracted for the third consecutive month in February. At the current juncture the loss of economic growth momentum in Q1 is still likely to be viewed by the Fed as only temporary undermined by the unusually bad seasonal weather with a return to more solid growth likely through the rest of the year.”
“US economic data releases have been disappointing consensus expectations since late January but have failed to dampen the US dollar’s upward momentum.”
“Weak economic growth and looser monetary policy overseas is continuing to support a stronger US dollar.”
“US Treasury Secretary Lew is scheduled to testify today on the international financial system before the House committee. Any comments regarding the strength of the US dollar will be watched closely by the market. US Treasury Secretary Lew has previously stated in January that “I’m going to repeat what I and all my predecessors have always said, which is a strong US dollar is good for America” and that its strength is a reflection that the US economy is “performing quite well”.”
“At the current juncture we would not expect US Treasury Secretary Lew to change rhetoric regarding the US dollar.”