23 Aug 2013
Fash: USD has smacked EM, it is coming for G10 - HSBC
FXstreet.com (Barcelona) - HSBC is anticipating a stronger USD going forward against the EUR, GBP and JPY among other G10 currencies.
Key Quotes
"The USD has a mixed historical relationship with Fed tightening cycles, on some occasions strengthening, on others weakening. But rising growth expectations rather than inflation fears are driving the current rise in US yields, which historically has created a stronger USD."
"Neither the ECB nor the BoE will want to live with rising market interest rates and a stronger currency. Policies will likely respond, through words and actions, taking their currencies lower against the USD."
"In fact, history shows that over the tightening cycle, the USD has tended to perform consistently across G10. It would be wrong to read too much into its recent weakness against the EUR, GBP and JPY. The USD has smacked EM, and it is coming for G10."
Key Quotes
"The USD has a mixed historical relationship with Fed tightening cycles, on some occasions strengthening, on others weakening. But rising growth expectations rather than inflation fears are driving the current rise in US yields, which historically has created a stronger USD."
"Neither the ECB nor the BoE will want to live with rising market interest rates and a stronger currency. Policies will likely respond, through words and actions, taking their currencies lower against the USD."
"In fact, history shows that over the tightening cycle, the USD has tended to perform consistently across G10. It would be wrong to read too much into its recent weakness against the EUR, GBP and JPY. The USD has smacked EM, and it is coming for G10."