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30 Sep 2013
Flash: The market has to be patient in waiting for USD strength - Rabobank
FXstreet.com (Barcelona) - According to Jane Foley, Senior FX Strategist at Rabobank, the greenback is not enjoying an environment in which to gain back its lost upside momentum.
Key Quotes
"While we maintain a positive medium-term outlook for the USD, signs of more definitive upside momentum for the greenback will have to wait until Washington has overcome its budget hurdles and until US economic data suggests that the US economy is sufficiently self-sustaining for QE to be reduced."
"Currently the imminent deadlines over the US budget and debt ceiling are diverting attention away from the Fed. If no last minute agreement is made, the risks to US growth threaten to delay Fed tapering and weigh heavily on the USD."
"This would suggest that EUR/USD will continue to consolidate around recent levels. It is our central projection that following a period of lacklustre trading that EUR/USD will gradually creep lower towards the 1.3200 area around year end and to the 1.300 level in 6 months time led by improving US economic data and a reduction in the Fed’s monthly asset purchases."
Key Quotes
"While we maintain a positive medium-term outlook for the USD, signs of more definitive upside momentum for the greenback will have to wait until Washington has overcome its budget hurdles and until US economic data suggests that the US economy is sufficiently self-sustaining for QE to be reduced."
"Currently the imminent deadlines over the US budget and debt ceiling are diverting attention away from the Fed. If no last minute agreement is made, the risks to US growth threaten to delay Fed tapering and weigh heavily on the USD."
"This would suggest that EUR/USD will continue to consolidate around recent levels. It is our central projection that following a period of lacklustre trading that EUR/USD will gradually creep lower towards the 1.3200 area around year end and to the 1.300 level in 6 months time led by improving US economic data and a reduction in the Fed’s monthly asset purchases."