20 Jun 2014
USD remains on the defensive - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, notes the weakness around the USD.
Key Quotes
"The US dollar has remained on the weaker side since the FOMC meeting and the press conference that followed from Fed Chair Yellen on Wednesday evening. US yields are anchored at the lower levels recorded after the FOMC meeting which has kept the dollar weaker."
"As was stated here yesterday, we are sceptical of how long this can last. We are now close to breaking point in terms of the compatibility of ‘forward guidance’ and the incoming economic data."
"In particular the lack of any acknowledgement of an upturn in inflationary pressures in the FOMC statement and the playing down of this by Chair Yellen as “noise” was very surprising. The 3-month annualised services inflation rate jumped to 3.9% in May, just below the 4.0% peak in March. The underlying inflationary picture is changing yet the statement failed to acknowledge this in any way."
Key Quotes
"The US dollar has remained on the weaker side since the FOMC meeting and the press conference that followed from Fed Chair Yellen on Wednesday evening. US yields are anchored at the lower levels recorded after the FOMC meeting which has kept the dollar weaker."
"As was stated here yesterday, we are sceptical of how long this can last. We are now close to breaking point in terms of the compatibility of ‘forward guidance’ and the incoming economic data."
"In particular the lack of any acknowledgement of an upturn in inflationary pressures in the FOMC statement and the playing down of this by Chair Yellen as “noise” was very surprising. The 3-month annualised services inflation rate jumped to 3.9% in May, just below the 4.0% peak in March. The underlying inflationary picture is changing yet the statement failed to acknowledge this in any way."