USD-bulls need to be more patient – Westpac

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 23, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Strategists at Westpac see conditions for another leg higher in the greenback could not be ripe just yet.

    Key Quotes

    “Conditions still not yet propitious for a sustained USD bounce, patient USD bulls should eventually be rewarded”.

    “Improving complexion to the data, including notably stronger leading indicators such as the regional PMIs offer a good starting point for the USD, but on its own won’t turn the tide”.

    “Developments in March-June 2015 may provide a useful parallel. Back then a dovish March 2015 FOMC left the USD reeling through Q2 despite stronger data – not dissimilar circumstances to where the USD finds itself today - but by June 2015 steadily improving data led to a notable decline in Fed anxiety and a revival in tightening expectations, restoring the USD’s uptrend”.

    “If that parallel holds the USD may find itself trading with a soft / consolidative tone (say 94-98 on DXY basis) for a few more weeks yet. Chair Yellen, ISM and payrolls on the docket next week”.
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