26 May 2015
USD expected to retain a slight edge – OCBC
FXStreet (Barcelona) - Emmanuel Ng, FX Strategist at OCBC Bank, notes that rate differentials will likely support the dollar, and further suggests remaining long USD/JPY and NZD/USD.
Key Quotes
“The FXSI (FX Sentiment Index) inched higher but remained squarely in Risk-Neutral territory with markets having little new factors to chew on. As such, and despite comments from the Fed’s Fischer noting that it was “misleading” to place too much importance on the Fed’s first rate hike, expect the greenback to retain a slight edge (note rate differential movements remain in favor of the greenback) over its counterparts pending further cues.”
“On this note, expect the EUR to remain under threat with Greek headlines still expected to be a drag, especially with technical talks scheduled for Tuesday.”
“Elsewhere, we continue to favor a long dollar bias via the JPY and NZD.”
Key Quotes
“The FXSI (FX Sentiment Index) inched higher but remained squarely in Risk-Neutral territory with markets having little new factors to chew on. As such, and despite comments from the Fed’s Fischer noting that it was “misleading” to place too much importance on the Fed’s first rate hike, expect the greenback to retain a slight edge (note rate differential movements remain in favor of the greenback) over its counterparts pending further cues.”
“On this note, expect the EUR to remain under threat with Greek headlines still expected to be a drag, especially with technical talks scheduled for Tuesday.”
“Elsewhere, we continue to favor a long dollar bias via the JPY and NZD.”