31 Jul 2013
Flash: USD to strengthen as 'dovish' Fed priced in - RBS
FXstreet.com (Barcelona) - A stronger USD trend is expected to be developed throughout Wednesday, according to Greg Gibbs, FX Strategist at RBS, although he sees clear risks at 12.30 and 18 GMT U.S. top-tier events.
Key Quotes
"The market has factored in a good deal of the dovish adjustment in the Fed message over the last month, and I doubt the Fed will change its guidance at this meeting. I see significant risks of dovish outcomes at the ECB and BoE meetings this week."
"The news overnight that the Obama administration is prepared to negotiate with Republicans a corporate tax overhaul that may include a tax break that may encourage US companies repatriating foreign earnings adds a new potential positive for the USD."
Key Quotes
"The market has factored in a good deal of the dovish adjustment in the Fed message over the last month, and I doubt the Fed will change its guidance at this meeting. I see significant risks of dovish outcomes at the ECB and BoE meetings this week."
"The news overnight that the Obama administration is prepared to negotiate with Republicans a corporate tax overhaul that may include a tax break that may encourage US companies repatriating foreign earnings adds a new potential positive for the USD."