19 Sep 2013
Flash: Implications for FX post FOMC, EUR/USD target 1.3710 - ANZ
FXstreet.com (Barcelona) - According to ANZ Strategists Tom Kenny, Tony Morriss and Richard Yetsenga, the USD is likely to continue trading very poorly in the very short term.
Key Quotes
"Reversification is on hold at least until the US data re-strengthens and/or we approach the December FOMC meeting. Cross
trades should take a back seat in the short term to a unitary focus on the USD."
"The lack of a tapering decision today is important, but perhaps more so are Bernanke’s efforts to signal that policy will continue to remain very easy, relative to the evolution of macro conditions, for quite some period of time."
"Expecting currencies, in the short term, to retest the extremes of the last few months price action seems a reasonable expectation. Targets would include EUR/USD 1.3710, AUD/USD 0.9670, NZD/USD 0.8680, USD/KRW 1055 and USD/SGD 1.23."
"In Asian currencies the largest moves are likely to be in the NDF’s overnight, as policy smoothing steps up in spot markets during
the Asian trading day."
Key Quotes
"Reversification is on hold at least until the US data re-strengthens and/or we approach the December FOMC meeting. Cross
trades should take a back seat in the short term to a unitary focus on the USD."
"The lack of a tapering decision today is important, but perhaps more so are Bernanke’s efforts to signal that policy will continue to remain very easy, relative to the evolution of macro conditions, for quite some period of time."
"Expecting currencies, in the short term, to retest the extremes of the last few months price action seems a reasonable expectation. Targets would include EUR/USD 1.3710, AUD/USD 0.9670, NZD/USD 0.8680, USD/KRW 1055 and USD/SGD 1.23."
"In Asian currencies the largest moves are likely to be in the NDF’s overnight, as policy smoothing steps up in spot markets during
the Asian trading day."