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10 Feb 2015
USD well placed to build gains in 2014 - RBS
FXStreet (Bali) - According to Greg Gibbs, FX Strategist at RBS, the USD is still well placed to build broadly on its gains made in 2014, particularly against EUR and JPY.
Key Quotes
"There has been a limited rebound in the USD after the much stronger than expected USA labour and wage data on Friday, even though US rates have also returned to largely factor in a rate hike at mid-year."
"It appears that the FX market has gotten used to the prospect of modest US rate rises and is seeing potential gains in other currencies they may benefit from a ‘search-for-yield’ and lower oil prices."
"Grexit fears continue to hang over the market but have not yet severely impinged on global risk appetite. A period of further consolidation and range trading may lie ahead."
"On balance, the USD is still well placed to build broadly on its gains made in 2014, particularly against EUR and JPY."
Key Quotes
"There has been a limited rebound in the USD after the much stronger than expected USA labour and wage data on Friday, even though US rates have also returned to largely factor in a rate hike at mid-year."
"It appears that the FX market has gotten used to the prospect of modest US rate rises and is seeing potential gains in other currencies they may benefit from a ‘search-for-yield’ and lower oil prices."
"Grexit fears continue to hang over the market but have not yet severely impinged on global risk appetite. A period of further consolidation and range trading may lie ahead."
"On balance, the USD is still well placed to build broadly on its gains made in 2014, particularly against EUR and JPY."