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27 Mar 2015
USD correction lower could be ephemeral – ANZ
FXStreet (Edinburgh) - Strategist Richard Yetsenga at ANZ believes the greenback could resume its uptrend in the near term.
Key Quotes
“We expect the current USD correction to be relatively short-lived”.
“The Fed’s recent shift shouldn’t have been that much of a surprise, vulnerabilities in EM are likely to continue to surface as USD liquidity tightens, China is a source of downside economic and financial risks, and hedging activity remains dollar supportive”.
“In the near term, AUD, GBP, MYR, SGD, and IDR remain vulnerable even if the USD weakens a bit further in the short term, while the JPY is likely to show some strength, on the crosses or against the USD”.
“The JPY remains a favoured play given the risk that concerns about the strength of the global economy become more broad-based”.
Key Quotes
“We expect the current USD correction to be relatively short-lived”.
“The Fed’s recent shift shouldn’t have been that much of a surprise, vulnerabilities in EM are likely to continue to surface as USD liquidity tightens, China is a source of downside economic and financial risks, and hedging activity remains dollar supportive”.
“In the near term, AUD, GBP, MYR, SGD, and IDR remain vulnerable even if the USD weakens a bit further in the short term, while the JPY is likely to show some strength, on the crosses or against the USD”.
“The JPY remains a favoured play given the risk that concerns about the strength of the global economy become more broad-based”.