9 Jun 2015
USD: buy the dips towards 94.00 – Westpac
FXStreet (Edinburgh) - According to strategists at Westpac, pullbacks in DXY towards the 94.00 area are seen as buying opportunities.
Key Quotes
“The renewed surge in bund yields has checked the USD’s advance but we assume this week's retail sales will go the way of pending home sales, housing starts, durable goods orders and last week's payrolls, matching the more constructive signals from our US data surprise index and helping solidify Sep FOMC tightening expectations”.
“Markets appear far too sanguine on Greece as well, and even if default risk is ultimately averted it is unlikely to prompt anything more than a short-lived EUR bounce. Any pullback in the USD index toward 94.0 should be bought”.
“Late May rally has failed to extend. Monday’s close at multi-week lows confirms that the upside is off the table in the near-term. Minor short term downside risk”.
Key Quotes
“The renewed surge in bund yields has checked the USD’s advance but we assume this week's retail sales will go the way of pending home sales, housing starts, durable goods orders and last week's payrolls, matching the more constructive signals from our US data surprise index and helping solidify Sep FOMC tightening expectations”.
“Markets appear far too sanguine on Greece as well, and even if default risk is ultimately averted it is unlikely to prompt anything more than a short-lived EUR bounce. Any pullback in the USD index toward 94.0 should be bought”.
“Late May rally has failed to extend. Monday’s close at multi-week lows confirms that the upside is off the table in the near-term. Minor short term downside risk”.