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3 Dec 2014
Key trend cutting likely to remain a stronger USD - RBS
FXStreet (Bali) - Greg Gibbs, FX Trading Strategist at RBS, notes that the key trend cutting through markets is likely to remain a stronger USD.
Key Quotes
"Comments by Fed officials Dudley and Fischer appear aimed at getting the market to think more about the approaching normalization of US interest rates, boosting the USD."
"Lower oil prices are weighing on emerging market and high yield bond indices and we need to be wary this does not spill over into global risk aversion."
"This could in turn see a correction in USD against EUR and JPY (by pushing out rate hike expectations in the US) with mixed implications for EM and commodity currencies. However, the key trend cutting through markets is likely to remain a stronger USD."
"The more confused state of global risk indicators may be pushing the ‘search for yield’ into the back seat and allowing more conventional drivers to influence currencies, such as commodity prices and interest rate differentials."
Key Quotes
"Comments by Fed officials Dudley and Fischer appear aimed at getting the market to think more about the approaching normalization of US interest rates, boosting the USD."
"Lower oil prices are weighing on emerging market and high yield bond indices and we need to be wary this does not spill over into global risk aversion."
"This could in turn see a correction in USD against EUR and JPY (by pushing out rate hike expectations in the US) with mixed implications for EM and commodity currencies. However, the key trend cutting through markets is likely to remain a stronger USD."
"The more confused state of global risk indicators may be pushing the ‘search for yield’ into the back seat and allowing more conventional drivers to influence currencies, such as commodity prices and interest rate differentials."