16 Jun 2015
DXY well supported around 94.00 – Westpac
FXStreet (Edinburgh) - According to strategists at Westpac, the US Dollar Index could find good support around the 94.00 handle.
Key Quotes
“The cadence of the US data has improved greatly in recent weeks yet the USD’s price action is not yet convincing”.
“The FOMC meeting should help “right the USD ship” however, with current conditions likely to be upgraded, Yellen should sound more upbeat on the outlook and Sep FOMC lift off expectations should ultimately firm (OIS pricing in a 50% chance)”.
“The dot plot is unlikely to be the USD negative it was back in March - they signal a bare two hikes this year leaving little to no room for further reductions”.
“The USD index should hold 94.00”.
“Bullish confirmation in May has failed to follow through as price steps lower in June and short term/medium term momentum hold a mild negative bias. May/June range holding”.
Key Quotes
“The cadence of the US data has improved greatly in recent weeks yet the USD’s price action is not yet convincing”.
“The FOMC meeting should help “right the USD ship” however, with current conditions likely to be upgraded, Yellen should sound more upbeat on the outlook and Sep FOMC lift off expectations should ultimately firm (OIS pricing in a 50% chance)”.
“The dot plot is unlikely to be the USD negative it was back in March - they signal a bare two hikes this year leaving little to no room for further reductions”.
“The USD index should hold 94.00”.
“Bullish confirmation in May has failed to follow through as price steps lower in June and short term/medium term momentum hold a mild negative bias. May/June range holding”.