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4 Sep 2015
USD uptrend already mature? – TDS
FXStreet (Edinburgh) - Analysts at TD Securities see the likeliness of the upside momentum in the greenback to lose traction in the longer run.
Key Quotes
“US economic growth momentum remains buoyant as the recovery shifts into high gear”.
“After rebounding at a 3.7% q/q pace in Q2, the economy is expected to boast a relatively robust 2.5% or better performance in Q3, underpinned by positive momentum in both consumer spending and business investment activity. Beyond Q3 the outlook remains uncertain, as the fallout from the strong dollar and weak global backdrop temper domestic activity”.
“With Fed rate expectations back in flux, the USD is likley to remain in corrective mode against most G10 pairs for now”.
“Rising rates will be USD positive, but the broader USD uptrend looks increasingly mature on longer horizons. USD longs still have their place, but we prefer to position against currencies more exposed to global growth concerns, falling commodity prices, and/or central banks still in easing mode”.
Key Quotes
“US economic growth momentum remains buoyant as the recovery shifts into high gear”.
“After rebounding at a 3.7% q/q pace in Q2, the economy is expected to boast a relatively robust 2.5% or better performance in Q3, underpinned by positive momentum in both consumer spending and business investment activity. Beyond Q3 the outlook remains uncertain, as the fallout from the strong dollar and weak global backdrop temper domestic activity”.
“With Fed rate expectations back in flux, the USD is likley to remain in corrective mode against most G10 pairs for now”.
“Rising rates will be USD positive, but the broader USD uptrend looks increasingly mature on longer horizons. USD longs still have their place, but we prefer to position against currencies more exposed to global growth concerns, falling commodity prices, and/or central banks still in easing mode”.