26 Jun 2014
Buy the dips in USD? - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, suggested that buying the dip in USD could be favoured by some investors.
Key Quotes
"A dollar sell-off ensued after the number but GBPUSD failed to break back above 1.7000, as we expect that plenty of weakness is already priced in for Q1 in the US, and with a general expectation of a rebound in Q2, the Fed are unlikely to change their policy course on this one reading alone. Also, there are some investors that will use the USD weakness to buy the dollar on dips as protection against the rising conflict in Iraq, softening the weak USD move".
"Overnight we saw very right ranges again typical of summer trading, and we open this morning a little below 1.7000 and at 1.2450 in GBPUSD and GBPEUR respectively."
Key Quotes
"A dollar sell-off ensued after the number but GBPUSD failed to break back above 1.7000, as we expect that plenty of weakness is already priced in for Q1 in the US, and with a general expectation of a rebound in Q2, the Fed are unlikely to change their policy course on this one reading alone. Also, there are some investors that will use the USD weakness to buy the dollar on dips as protection against the rising conflict in Iraq, softening the weak USD move".
"Overnight we saw very right ranges again typical of summer trading, and we open this morning a little below 1.7000 and at 1.2450 in GBPUSD and GBPEUR respectively."