17 Mar 2015
FOMC to be the trigger to ‘uncoil’ markets – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team believes the USD rally will continue over the medium-term, and expects tomorrow’s FOMC meeting to trigger the FX space out of the current consolidation phase.
Key Quotes
“Given the lack of any new fundamental developments, the dollar continues to consolidate ahead of tomorrow’s FOMC meeting.”
“The euro has been largely confined to a $1.0450-1.0650 trading range since Friday, when the weak US retail sales reading gave the dollar rally a reason to pause. Yet the correction has remained shallow, with the euro unable to mount a challenge on last week’s highs near $1.08."
“Cable has been similarly confined to a $1.47-1.49 range since Friday, unable to test last week’s high near $1.51."
“Dollar/yen has been in a 50 tick range over the last three days (121.00-121.50), and has yet to test last week’s low near 120.50.”
“As we often note, smaller and smaller trading ranges in the FX markets are often akin to a coiling spring which eventually uncoils in a rapid fashion. The FOMC should be the impetus for markets to “uncoil”.”
“We believe the case remains strong for the dollar bull trend to continue in the medium-term.”
Key Quotes
“Given the lack of any new fundamental developments, the dollar continues to consolidate ahead of tomorrow’s FOMC meeting.”
“The euro has been largely confined to a $1.0450-1.0650 trading range since Friday, when the weak US retail sales reading gave the dollar rally a reason to pause. Yet the correction has remained shallow, with the euro unable to mount a challenge on last week’s highs near $1.08."
“Cable has been similarly confined to a $1.47-1.49 range since Friday, unable to test last week’s high near $1.51."
“Dollar/yen has been in a 50 tick range over the last three days (121.00-121.50), and has yet to test last week’s low near 120.50.”
“As we often note, smaller and smaller trading ranges in the FX markets are often akin to a coiling spring which eventually uncoils in a rapid fashion. The FOMC should be the impetus for markets to “uncoil”.”
“We believe the case remains strong for the dollar bull trend to continue in the medium-term.”