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10 Feb 2016
USD supported around 96.00 – Westpac
FXStreet (Edinburgh) - The greenback, tracked by the US Dollar Index, could find decent support in the 96.00 area, suggested strategists at Westpac.
Key Quotes
“Trading poorly and may cede yet more ground near term when Chair Yellen formally endorses a patient "wait and see approach".
“But, USD may be pricing in too much growth pessimism, certainly that's message from our US data surprise index which is on the cusp of a recovery. That would match the observation that much of Q4's softness was inventory driven, meanwhile three year highs for household savings, along with the steady fall in gasoline prices and mortgage rates should underpin healthier outcomes in H1 2016".
"The Atlanta Fed’s Q1 Nowcast warns as much – it is very early days yet but their Q1 GDP growth estimate has risen from 1.2% to 2.2% so far in February".
Key Quotes
“Trading poorly and may cede yet more ground near term when Chair Yellen formally endorses a patient "wait and see approach".
“But, USD may be pricing in too much growth pessimism, certainly that's message from our US data surprise index which is on the cusp of a recovery. That would match the observation that much of Q4's softness was inventory driven, meanwhile three year highs for household savings, along with the steady fall in gasoline prices and mortgage rates should underpin healthier outcomes in H1 2016".
"The Atlanta Fed’s Q1 Nowcast warns as much – it is very early days yet but their Q1 GDP growth estimate has risen from 1.2% to 2.2% so far in February".