9 Apr 2015
USD upside remains intact, albeit at a slower pace – Danske Bank
FXStreet (Edinburgh) - In the view of Kristoffer Lomholt, Analyst at Danske Bank, the greenback could extend its upside in the near term at a more gradual pace.
Key Quotes
“EUR/USD was little moved by the FOMC minutes last night as limited new information became available from the March meeting”.
“With a data-dependent door still open for a first US hike this year (we expect it in September), the case for a stronger USD in 6M time remains intact, in our view”.
“The Fed is voicing concerns that dollar appreciation is partly to blame for the current soft patch in growth, limiting the downside in EUR/USD to around parity in our view, but we don’t think Yellen and co are on the brink of engaging in any currency battle”.
“Some more - preferably gradual - USD strength can be tolerated by them, we think, in the absence of new adverse shocks”.
Key Quotes
“EUR/USD was little moved by the FOMC minutes last night as limited new information became available from the March meeting”.
“With a data-dependent door still open for a first US hike this year (we expect it in September), the case for a stronger USD in 6M time remains intact, in our view”.
“The Fed is voicing concerns that dollar appreciation is partly to blame for the current soft patch in growth, limiting the downside in EUR/USD to around parity in our view, but we don’t think Yellen and co are on the brink of engaging in any currency battle”.
“Some more - preferably gradual - USD strength can be tolerated by them, we think, in the absence of new adverse shocks”.