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4 Mar 2015
USD on a firmer footing - RBS
FXStreet (Bali) - Greg Gibbs, FX Strategist at RBS, notes that the broader picture in both GBP and NZD, while stronger in recent weeks, remain still in down-trends vs USD.
Key Quotes
"The USD has firmed against most currencies over the last few trading days. US 2yr-swap rates have been relatively stable around their cyclical highs since last month’s stronger than expected payrolls. As such, the outlook for Fed policy has not changed too much. Nevertheless, the EUR and JPY have traded to their lows for the year-to-date and are exhibiting weaker trends."
"While some major currencies had been firming against the USD over the last month (GBP and NZD), they have run out of steam probably dragged down by EUR and JPY and some EM and other commodity currencies that have been weaker in recent days. This is partly technical with GBP and NZD bumping up against resistances (the base of their old ranges in Q4 last year). The broader picture remains that both are still in down-trends against the USD over the last six months or so."
Key Quotes
"The USD has firmed against most currencies over the last few trading days. US 2yr-swap rates have been relatively stable around their cyclical highs since last month’s stronger than expected payrolls. As such, the outlook for Fed policy has not changed too much. Nevertheless, the EUR and JPY have traded to their lows for the year-to-date and are exhibiting weaker trends."
"While some major currencies had been firming against the USD over the last month (GBP and NZD), they have run out of steam probably dragged down by EUR and JPY and some EM and other commodity currencies that have been weaker in recent days. This is partly technical with GBP and NZD bumping up against resistances (the base of their old ranges in Q4 last year). The broader picture remains that both are still in down-trends against the USD over the last six months or so."