7 Jan 2015
USD trades higher, USD/JPY back above 119 – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team comments on the US day to be released today, and expects NA traders to continue the stronger USD trend, with Dollar returning back above the 119 handle against the Yen.
Key Quotes
“The dollar is trading broadly higher, and North American traders are likely to follow suit. The euro, Swiss franc, and sterling have made new lows while the greenback was bought in Asia against the yen to return to the JPY119.25 area.”
“The US reports the ADP employment estimate, which will steal some thunder from Friday's official data. There is some concern that the energy sector job losses will weaken the US labor market. It is important to keep it in perspective. Employment in the energy sector accounts for less than 1.5% of US jobs.”
“The US will also report the November trade balance. Here, there is a bit of a tug-of-war. Growth differentials would be expected to widen the deficit while the decline in oil prices pushes in the other direction.”
“We argue that the FOMC minutes have a high noise to signal ratio. Policy signals are clearest from the Fed's leadership of Yellen, Fischer, and Dudley. The instrument that best expresses their views is the FOMC statement. The minutes obscure the signal.”
Key Quotes
“The dollar is trading broadly higher, and North American traders are likely to follow suit. The euro, Swiss franc, and sterling have made new lows while the greenback was bought in Asia against the yen to return to the JPY119.25 area.”
“The US reports the ADP employment estimate, which will steal some thunder from Friday's official data. There is some concern that the energy sector job losses will weaken the US labor market. It is important to keep it in perspective. Employment in the energy sector accounts for less than 1.5% of US jobs.”
“The US will also report the November trade balance. Here, there is a bit of a tug-of-war. Growth differentials would be expected to widen the deficit while the decline in oil prices pushes in the other direction.”
“We argue that the FOMC minutes have a high noise to signal ratio. Policy signals are clearest from the Fed's leadership of Yellen, Fischer, and Dudley. The instrument that best expresses their views is the FOMC statement. The minutes obscure the signal.”