8 May 2014
The greenback extends the downbeat momentum - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, notes the continuation of the bearish tone around the USD.
Key Quotes
"The US dollar has continued to remain on the defensive in the near-term following yesterday’s semi-annual testimony by Fed Chair Yellen to the Joint Economic Committee. The tone of the speech was dovish as expected with Fed Chair Yellen placing more emphasis on the downside risk to economic growth from the recent loss of momentum in the US housing market recovery."
"Still the Fed remains confident that economic growth will strengthen this year viewing the sharp slowdown in Q1 as transitory, with evidence building that the economy is rebounding strongly in early Q2. Fed Chair Yellen also reiterated that the Fed would continue to gradually taper QE which would likely end in the autumn, and then followed after a “considerable” period by the first Fed rate hike."
"No specific time period has been attached to the considerable time period. US yields increased modestly yesterday but that likely mainly reflected an easing of geopolitical tensions related to developments in the Ukraine offering little support for the US dollar."
Key Quotes
"The US dollar has continued to remain on the defensive in the near-term following yesterday’s semi-annual testimony by Fed Chair Yellen to the Joint Economic Committee. The tone of the speech was dovish as expected with Fed Chair Yellen placing more emphasis on the downside risk to economic growth from the recent loss of momentum in the US housing market recovery."
"Still the Fed remains confident that economic growth will strengthen this year viewing the sharp slowdown in Q1 as transitory, with evidence building that the economy is rebounding strongly in early Q2. Fed Chair Yellen also reiterated that the Fed would continue to gradually taper QE which would likely end in the autumn, and then followed after a “considerable” period by the first Fed rate hike."
"No specific time period has been attached to the considerable time period. US yields increased modestly yesterday but that likely mainly reflected an easing of geopolitical tensions related to developments in the Ukraine offering little support for the US dollar."