16 Jul 2014
USD keeps the mixed tone - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, underlines the mixed outlook for the greenback today.
Key Quotes
"The dollar has been mixed during the Asian trading session with positive China GDP offsetting broader positive dollar sentiment. Versus the majors the dollar has gained, although pretty modestly with the DXY index up 0.3% from the close on Monday while the US rates market is pretty flat after the semi-annual testimony from Fed Chair Yellen."
"The testimony and the relatively benign response must go down as a success for Yellen given the testimony did include a subtle shift that we believe paves the way for greater market volatility, particularly around US labour market data. The comment that if the jobs market “continues to improve more quickly than anticipated” then rate increases “would occur sooner and be more rapid than currently envisioned”. This was immediately countered by the comment that “conversely if economic performance is disappointing” then policy would be “more accommodative than currently anticipated”."
Key Quotes
"The dollar has been mixed during the Asian trading session with positive China GDP offsetting broader positive dollar sentiment. Versus the majors the dollar has gained, although pretty modestly with the DXY index up 0.3% from the close on Monday while the US rates market is pretty flat after the semi-annual testimony from Fed Chair Yellen."
"The testimony and the relatively benign response must go down as a success for Yellen given the testimony did include a subtle shift that we believe paves the way for greater market volatility, particularly around US labour market data. The comment that if the jobs market “continues to improve more quickly than anticipated” then rate increases “would occur sooner and be more rapid than currently envisioned”. This was immediately countered by the comment that “conversely if economic performance is disappointing” then policy would be “more accommodative than currently anticipated”."