Imre Speizer, Senior Markets Strategist at Westpac, notes that the faith in the US dollar’s uptrend has understandably taken a knock amid stretched positioning and the disappointing stimulus package the ECB delivered last week.
“However, Chair Yellen has put her final seal of approval in favour of Dec lift-off and Friday’s strong payrolls report removed the risk of any last-minute data shocks.”
“US rates have further to go to before December is fully priced in - it may not be much but mechanically the front end-can rise a touch further and thus confer a little more support for USD.”
“The USD index (DXY) could have another stab below 98.0 near term but should eventually sustain a rise beyond 100.0.”
December 7, 2016 GBP falls as industrial & manu. production miss
The pound has come under pressure in London trading today. EURGBP buying has been a driver, with the cross rallying some 0.5% to a peak of 0.8510, since ebbing to around 0.8490. Gains failed to sustain above the 20-day moving average, which is at 0.8503...
December 7, 2016 Unexpected fall in UK economic indicators
This morning saw a substantial drop in both the manufacturing production and industrial production in the UK for the month of October which comes as a timely reminder that the economy remains vulnerable. The pound ended its recent rise against the US dollar yesterday after hitting a 2-month high...
December 7, 2016 U.S. dollar recovers from Monday lows
The U.S. dollar index managed to recover from a 14-day low on Monday at 99.87 with prices turning bullish yesterday. However, the gains remain limited within Monday's range with further upside likely to see the 100.80 resistance being established...
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