20 Mar 2015
USD remains a clear winner – Investec
FXStreet (Barcelona) - Jonathan Pryor, Head of FX dealing at Investec, explains that a Fed hike later and slower will be still positive for USD.
Key Quotes
“In the aftermath of the big US Dollar selloff on Wednesday evening after the Fed lowered the expected path of economic growth, inflation, and interest rate rises - yesterday's trade saw a full reversal of moves as we had expected.”
“The realisation that buying Euros at 1.1000 against the greenback is not appealing with Greece renegotiations looming in the summer and QE set to roll for 18 months.”
“The realisation that buying Pounds above 1.5000 against the Dollar is not appealing with the closest run General election in a decade set to cause uncertainty and potential Sterling weakness.”
“The realisation is dawning that buying Dollars, even if the Fed hike later and slower, is still a more attractive option.”
“Even beyond the Pound and Euro, any potential Fed hike is in stark contrast to a world that is cutting rates (over 20 countries have cut interest rates globally since the start of 2015, not to mention QE programs and currency market interventions).”
“In some ways, even a slightly disappointing Fed leaves the Dollar a default winner.”
Key Quotes
“In the aftermath of the big US Dollar selloff on Wednesday evening after the Fed lowered the expected path of economic growth, inflation, and interest rate rises - yesterday's trade saw a full reversal of moves as we had expected.”
“The realisation that buying Euros at 1.1000 against the greenback is not appealing with Greece renegotiations looming in the summer and QE set to roll for 18 months.”
“The realisation that buying Pounds above 1.5000 against the Dollar is not appealing with the closest run General election in a decade set to cause uncertainty and potential Sterling weakness.”
“The realisation is dawning that buying Dollars, even if the Fed hike later and slower, is still a more attractive option.”
“Even beyond the Pound and Euro, any potential Fed hike is in stark contrast to a world that is cutting rates (over 20 countries have cut interest rates globally since the start of 2015, not to mention QE programs and currency market interventions).”
“In some ways, even a slightly disappointing Fed leaves the Dollar a default winner.”