Market news
07.11.2019, 10:00

USD: Short term support? – Westpac

Richard Franulovich, head of FX strategy at Westpac, suggests that the USD could not find its feet despite a Fed pause and strong payrolls but now that yields are rising it has regained poise, DXY 97.0 likely to provide strong short term support.

“The 1-3 month trend still looks negative, though. There’s one more leg up for risk appetite on confirmation of a partial US-China deal in Dec (still more likely than not). And while that will lift US yields further and cement a Fed pause, the more consistent trend has seen the USD fall (ex-JPY), as receding tensions take pressure off the more trade/factory-sensitive Asia/Europe economies. The New Year will see impeachment and 2020 elections develop as a more prominent USD driver too. Trump’s tax and trade policies accentuated the US-RoW growth disparity, cementing USD upside, and any lengthening in Trump re-election odds won’t sit well with the USD. Slightly better German data (factory orders, services PMI), cautious German backing for a banking union, a more open minded stance on fiscal stimulus and diminished risk of EU auto tariffs also play to less bullish USD atmospherics into year’s end.”

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location