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Dollar index: Correction is an example of buy rumour, sell fact - Rabobank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Delhi) – Piotr Matys, EM FX Strategist at Rabobank, suggests that the US dollar weakened further against its G10 peers (excluding GBP) with the DXY index falling to the lowest level so far this week of 98.00 on Tuesday.

    Key Quotes

    “The ongoing correction in the DXY index from the post-Fed high at 99.294 is a text book example of “buy rumour, sell fact“ following the 25bps hike on December 16. It also validates our view expressed on many previous occasions that the Fed’s lift-off should be already priced in and therefore its impact on the market should be relatively limited. More importantly, with Chair Janet Yellen strongly emphasising that the tightening cycle will be very gradual, the USD has lost its bullish momentum not only vs. its G10 peers, but also against the majority of EM currencies.”
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