5 Jun 2015
Broadening USD long's - Nomura
FXStreet (Guatemala) - Analysts in Nomura's Global FX Strategy team explained that they are not overly concerned about the tone of recent Fed comments.
Key Quotes:
"Key Fed speakers seem to be reacting (with a lag) to the weakness observed on the GDP front in Q1 and early Q2."
"If the data is improving as we head into Q3, the Fed will shift back to more hawkish language, in our view. And with only one hike priced for this year, we think it will require incremental weakness (as opposed to data we are getting currently) for the US short end to rally meaningfully further. Against this background, we retain a long USD trading bias."
"We currently have only long USD/JPY exposure (as we were stopped out of short AUD/long USD). But we are considering broadening our long USD exposure."
Key Quotes:
"Key Fed speakers seem to be reacting (with a lag) to the weakness observed on the GDP front in Q1 and early Q2."
"If the data is improving as we head into Q3, the Fed will shift back to more hawkish language, in our view. And with only one hike priced for this year, we think it will require incremental weakness (as opposed to data we are getting currently) for the US short end to rally meaningfully further. Against this background, we retain a long USD trading bias."
"We currently have only long USD/JPY exposure (as we were stopped out of short AUD/long USD). But we are considering broadening our long USD exposure."