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21 Jan 2016
USD expects further pullbacks near term – Westpac
FXStreet (Edinburgh) - Strategist at Westpac Richard Franulovich sees the dollar gaining further downside pressure in the next sessions.
Key Quotes
“Event risk next week unlikely to help the USD much at all”.
“The FOMC meeting is likely to be a placeholder and should still stress gradual normalisation, though the risk is that doubts around “global and financial market developments” may be reinserted into the statement and related to that downside inflation risk may be given greater prominence”.
“That, and a probable sub-1% advance Q4 GDP, matching the Atlanta Fed nowcast, could see the USD trade on the back foot next week”.
“Q4 employment cost index must print solidly above consensus to defuse these downside USD risks next week”.
Key Quotes
“Event risk next week unlikely to help the USD much at all”.
“The FOMC meeting is likely to be a placeholder and should still stress gradual normalisation, though the risk is that doubts around “global and financial market developments” may be reinserted into the statement and related to that downside inflation risk may be given greater prominence”.
“That, and a probable sub-1% advance Q4 GDP, matching the Atlanta Fed nowcast, could see the USD trade on the back foot next week”.
“Q4 employment cost index must print solidly above consensus to defuse these downside USD risks next week”.