16 Dec 2015
USD outlook remains constructive – Westpac
FXStreet (Edinburgh) - In the view of strategists at Westpac, the perspective for the greenback remains constructive in the near term.
Key Quotes
“A few caveats for the USD right here: 1) pockets of questionable data (ie a sub-50 ISM) amid still decent jobs; 2) DXY's failure at the key 100 tech level; 3) year-end position squaring pressures; and 4) likely dovish Yellen guidance at this week's lift-off”.
“Would not get too carried away though - a follow-up Fed hike could come as soon as March, substantially sooner than discounted (2016Q3), aided and abetted by favourable oil price base-effects that will lift inflation almost a percentage point and a potentially mild-winter if long range forecasts are to be believed, flattering Q1 growth. Sticking with a constructive 3mth USD outlook”.
Key Quotes
“A few caveats for the USD right here: 1) pockets of questionable data (ie a sub-50 ISM) amid still decent jobs; 2) DXY's failure at the key 100 tech level; 3) year-end position squaring pressures; and 4) likely dovish Yellen guidance at this week's lift-off”.
“Would not get too carried away though - a follow-up Fed hike could come as soon as March, substantially sooner than discounted (2016Q3), aided and abetted by favourable oil price base-effects that will lift inflation almost a percentage point and a potentially mild-winter if long range forecasts are to be believed, flattering Q1 growth. Sticking with a constructive 3mth USD outlook”.