14 Oct 2013
Flash: Current USD weakness will not persist – HSBC
FXstreet.com (Córdoba) - The HSBC analyst team commented on the USD, EUR and GBP and how the performances of these currencies are being determined by shifts in interest rate differentials, determined by relative economic fortunes.
Key Quotes
"We believe the current optimism on the UK and Eurozone economic revivals is overdone, and that the associated expectations for interest rate hikes will be pared back over the coming months".
"By contrast, although US tapering has been delayed by some patchy US data, the Federal Reserve is still heading towards the exit from ultraaccommodative monetary policy more swiftly than its peers".
"It is this reality that means current USD weakness will not persist".
Key Quotes
"We believe the current optimism on the UK and Eurozone economic revivals is overdone, and that the associated expectations for interest rate hikes will be pared back over the coming months".
"By contrast, although US tapering has been delayed by some patchy US data, the Federal Reserve is still heading towards the exit from ultraaccommodative monetary policy more swiftly than its peers".
"It is this reality that means current USD weakness will not persist".