7 May 2014
Selling interest continues to hit the USD - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, underlines the weakness still surrounding the USD.
Key Quotes
"The US dollar continues to remain under downward pressure ahead of Fed Chair Yellen’s semi-annual testimony to the Joint Economic Committee. US dollar weakness accelerated yesterday with the dollar index declining to its lowest level since late October 2013."
"Key support levels for the dollar index are now located between the 78.00 and 79.00-levels which have held since late 2011. The ongoing decline in US yields despite building evidence that a strong economic rebound is underway in the US is serving to undermine confidence in the US dollar."
"However, the release yesterday of the weaker than expected US trade report for March will likely lead to a further downward revision to growth in Q1 following the weaker than construction spending report released late last week. As a result it appears likely that the economy may even have contracted modestly in Q1."
Key Quotes
"The US dollar continues to remain under downward pressure ahead of Fed Chair Yellen’s semi-annual testimony to the Joint Economic Committee. US dollar weakness accelerated yesterday with the dollar index declining to its lowest level since late October 2013."
"Key support levels for the dollar index are now located between the 78.00 and 79.00-levels which have held since late 2011. The ongoing decline in US yields despite building evidence that a strong economic rebound is underway in the US is serving to undermine confidence in the US dollar."
"However, the release yesterday of the weaker than expected US trade report for March will likely lead to a further downward revision to growth in Q1 following the weaker than construction spending report released late last week. As a result it appears likely that the economy may even have contracted modestly in Q1."