7 Jul 2014
USD extends the firm tone - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, observes the USD strength following the recent US data releases.
Key Quotes
"The US dollar has continued to strengthen modestly in the Asian trading session with the dollar index rising back above its 200-day moving average at close to 80.25. The US dollar is continuing to firm following the release late last week of the stronger than expected US employment report for June which is prompting investors to bring forward Fed rate hike expectations."
"The two-year US Treasury bond yield remains close to the highs from early September of last year at just over 0.5%. A break above the intra-day high of 0.53% recorded on the 6th September 2013 would likely encourage short-term yields in the US to rise further in the near-term reaching their highest levels since the 1H 2011."
"Short-term yields have been moving in the US dollar’s favour over the last month and despite recent US dollar gains there still appears scope for further catch up strength in the near-term. The latest IMM report also revealed that speculative US dollar positioning remains relatively flat and as such is unlikely to be an impediment to further gains in the neat-term."
Key Quotes
"The US dollar has continued to strengthen modestly in the Asian trading session with the dollar index rising back above its 200-day moving average at close to 80.25. The US dollar is continuing to firm following the release late last week of the stronger than expected US employment report for June which is prompting investors to bring forward Fed rate hike expectations."
"The two-year US Treasury bond yield remains close to the highs from early September of last year at just over 0.5%. A break above the intra-day high of 0.53% recorded on the 6th September 2013 would likely encourage short-term yields in the US to rise further in the near-term reaching their highest levels since the 1H 2011."
"Short-term yields have been moving in the US dollar’s favour over the last month and despite recent US dollar gains there still appears scope for further catch up strength in the near-term. The latest IMM report also revealed that speculative US dollar positioning remains relatively flat and as such is unlikely to be an impediment to further gains in the neat-term."