18 Feb 2015
USD poised to consolidate prior to resume its upside – TDS
FXStreet (Edinburgh) - Shaun Osborne, Chief FX Strategist at TD Securities, remains bullish on the US dollar in the longer term.
Key Quotes
“We think the recent performance in the USD is largely justified by fundamental developments. Short, medium and long-term nominal bond and swap spreads are broadly moving in the USD’s favour, reflecting stronger US growth and expectations that the Fed is nearing rate lift-off”.
“We remain bullish on the outlook for the USD overall but our valuation estimate suggests that a lot of good news is priced in to the USD broadly at current levels and more supportive news or developments may be needed for the USD to strengthen further at this stage”.
“We rather think trends support our view that the USD is poised to consolidate in the near-term (next few weeks) before strengthening again”.
Key Quotes
“We think the recent performance in the USD is largely justified by fundamental developments. Short, medium and long-term nominal bond and swap spreads are broadly moving in the USD’s favour, reflecting stronger US growth and expectations that the Fed is nearing rate lift-off”.
“We remain bullish on the outlook for the USD overall but our valuation estimate suggests that a lot of good news is priced in to the USD broadly at current levels and more supportive news or developments may be needed for the USD to strengthen further at this stage”.
“We rather think trends support our view that the USD is poised to consolidate in the near-term (next few weeks) before strengthening again”.