26 May 2015
EUR/USD + USD/JPY: Decent buying of USD - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained the sound of silence can be deafening which was the case yesterday with the US and UK markets on holiday. But with markets back in full force we have seen some decent buying of USD.
Key Quotes:
"Consequently, EUR/USD has been pulled to the low."
"With German bunds better bid overnight and the potential for headlines about Greece, upside looks to be capped."
"USD/JPY has also breached its multi-month trading range to the topside. USD/JPY downside looks capped for now."
"Thus far, markets seem to rally around the USD following a stronger CPI report on Friday which has led to the perception that Fed hikes this year remain a distinct possibility."
"The Fed have invested a lot of Fed speak over the past year in talking up 2015 hikes so reneging on this would likely do more harm than good. The issue is about optics—can the Fed hike when growth momentum has slowed? Sure it can, if the slowdown is temporary—we just think it will take a little longer to work through. IMM positioning last week showed that USD bull bets have been scaled back markedly so we think there will be an appetite for investors to jump back onto the USD-bull story."
Key Quotes:
"Consequently, EUR/USD has been pulled to the low."
"With German bunds better bid overnight and the potential for headlines about Greece, upside looks to be capped."
"USD/JPY has also breached its multi-month trading range to the topside. USD/JPY downside looks capped for now."
"Thus far, markets seem to rally around the USD following a stronger CPI report on Friday which has led to the perception that Fed hikes this year remain a distinct possibility."
"The Fed have invested a lot of Fed speak over the past year in talking up 2015 hikes so reneging on this would likely do more harm than good. The issue is about optics—can the Fed hike when growth momentum has slowed? Sure it can, if the slowdown is temporary—we just think it will take a little longer to work through. IMM positioning last week showed that USD bull bets have been scaled back markedly so we think there will be an appetite for investors to jump back onto the USD-bull story."