29 Jan 2015
Currencies to be mixed and messy - ANZ
FXStreet (Guatemala) - Richard Yetsenga, analyst at ANZ explained that they have argued that the short-term price action in currencies is likely to be mixed and messy.
Key Quotes:
"That shouldn’t distract, however, from the fact that the USD’s up-cycle has some strong drivers, some of increasingly appear to be structural."
US cash movements were last an important feature of financial markets in 2009 and 2010."
"During that period the primary beneficiaries were risky assets of all sorts – equities, credit, and also in some cases, currencies. This time around the main impact of a shift in US cash holdings is likely to be much more concentrated in the currency space, and particularly the USD."
"Certainly in the post crisis period, almost every non-USD asset has been the recipient of a diversification shift at one time or another. US cash, however, now seems to be back on the (Reversification) map."
Key Quotes:
"That shouldn’t distract, however, from the fact that the USD’s up-cycle has some strong drivers, some of increasingly appear to be structural."
US cash movements were last an important feature of financial markets in 2009 and 2010."
"During that period the primary beneficiaries were risky assets of all sorts – equities, credit, and also in some cases, currencies. This time around the main impact of a shift in US cash holdings is likely to be much more concentrated in the currency space, and particularly the USD."
"Certainly in the post crisis period, almost every non-USD asset has been the recipient of a diversification shift at one time or another. US cash, however, now seems to be back on the (Reversification) map."