4 Dec 2014
USD might see profit taking – DBS
FXStreet (Barcelona) - The DBS Research Team notes that the stronger USD might see profit-taking if the nonfarm payrolls disappoint by falling below 200k.
Key Quotes
“The USD continues to draw strength from better-than-expected US data and the Fed’s sanguine assessment of the US economy. The benchmark DXY (USD) index ended yesterday’s session at 88.956, which was above its June 2010 high (88.686) and converging on its March 2009 high (89.624).“
“The US ISM surveys saw both the manufacturing and services indices beating estimates for Nov14. Fed officials spoke more about the need to lift rates and normalize monetary policy. That said, the US monthly jobs report may disappoint tomorrow if tonight’s weekly initial jobless claims head higher again. The ADP employment report and the employment sub-indices have also missed their mark of late. A disappointing nonfarm payrolls, say below 200K, could lead to profit-taking in the USD.”
Key Quotes
“The USD continues to draw strength from better-than-expected US data and the Fed’s sanguine assessment of the US economy. The benchmark DXY (USD) index ended yesterday’s session at 88.956, which was above its June 2010 high (88.686) and converging on its March 2009 high (89.624).“
“The US ISM surveys saw both the manufacturing and services indices beating estimates for Nov14. Fed officials spoke more about the need to lift rates and normalize monetary policy. That said, the US monthly jobs report may disappoint tomorrow if tonight’s weekly initial jobless claims head higher again. The ADP employment report and the employment sub-indices have also missed their mark of late. A disappointing nonfarm payrolls, say below 200K, could lead to profit-taking in the USD.”