USD: Not convincing for a meaningful up-leg - Westpac

Richard Franulovich, Research Analyst at Westpac, suggests that he is still not convinced that the USD has the wherewithal for a meaningful up-leg.

Key Quotes

“The ECB does not appear to be any rush to expand or extend QE, our US surprise index has not yet found a bottom and the Fed is unlikely to deliver anything more than a “dovish hike” in Dec.

The Fed may have declared more forcefully than we have been accustomed to lately that it is on the verge of hiking rates but 14 Dec odds are likely capped at current levels (56%) until US election risks are out of the way. The Dec FOMC is still 2 ½ months away too.

The prospect of an OPEC deal on output at the margin should play USD negative too, though more so against the commodity bloc and EM currencies.”