2 Jul 2015
DXY seen around 98.00 in 1-month – Westpac
FXStreet (Edinburgh) - Richard Franulovich, Strategist at Westpac, sees the US Dollar Index re-visiting the 98.00 area in a month’s view.
Key Quotes
“Sep Fed hike odds have been trimmed back to a bare 35%, far too low given steadily improving US data trends and the not unreasonable assumption that worst case tail risk scenarios for Greece can be avoided – a majority of polls favour “yes” outcome at this weekend’s referendum and a groundswell is building that Greek default does not imply euro exit”.
“Neither Bullard nor Vice Chair Fischer seemed too concerned by Greek risks this week in any case”.
“Our surprise index suggests the recovery in the tenor of the US data is still in its infancy. USD index still on course for 98 on a one month horizon”.
Key Quotes
“Sep Fed hike odds have been trimmed back to a bare 35%, far too low given steadily improving US data trends and the not unreasonable assumption that worst case tail risk scenarios for Greece can be avoided – a majority of polls favour “yes” outcome at this weekend’s referendum and a groundswell is building that Greek default does not imply euro exit”.
“Neither Bullard nor Vice Chair Fischer seemed too concerned by Greek risks this week in any case”.
“Our surprise index suggests the recovery in the tenor of the US data is still in its infancy. USD index still on course for 98 on a one month horizon”.