20 Mar 2015
Market snapshot; fundamentals support USD - Scotiabank
FXStreet (Guatemala) - Eric Theoret, currency strategist at Scotiabank explained that the fundamentals, technicals, sentiment and positioning all favored the USD heading into the Fed.
Key Quotes:
"...with Wednesday’s statement altered in line with expectations and the surprise arising from softened expectations for the path of tightening."
"The Fed surprise provided for considerable volatility and sizeable intraday ranges, with those for CAD, EUR and GBP reaching levels not seen since 2010, 2009, and 2008, respectively."
"Technicals since Wednesday hint to a differentiated USD performance, with GBP, AUD and SEK appearing most vulnerable to downside having tested Wednesday’s open. For others, such as CAD, EUR, JPY, NOK and CHF, we look to the short term MA’s (9 & 21) for clues."
"Technicals favor NZD relative to its peers. Overall, USD fundamentals remain supportive given the Fed’s bias to tightening as others engage or contemplate in further accommodation, and weekly candles help to confirm the outlook for USD strength."
Key Quotes:
"...with Wednesday’s statement altered in line with expectations and the surprise arising from softened expectations for the path of tightening."
"The Fed surprise provided for considerable volatility and sizeable intraday ranges, with those for CAD, EUR and GBP reaching levels not seen since 2010, 2009, and 2008, respectively."
"Technicals since Wednesday hint to a differentiated USD performance, with GBP, AUD and SEK appearing most vulnerable to downside having tested Wednesday’s open. For others, such as CAD, EUR, JPY, NOK and CHF, we look to the short term MA’s (9 & 21) for clues."
"Technicals favor NZD relative to its peers. Overall, USD fundamentals remain supportive given the Fed’s bias to tightening as others engage or contemplate in further accommodation, and weekly candles help to confirm the outlook for USD strength."