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4 Jun 2015
USD warming up for the next leg higher? – Danske Bank
FXStreet (Edinburgh) - Signe Roed-Frederiksen, Senior Analyst at Danske Bank, sees tomorrow’s NFP confirming the positive momentum in the US labour market and bolstering the next leg higher in the dollar.
Key Quotes
“Tomorrow’s US employment report should confirm that the US labour market remains in good shape and notably we see good chances of a rebound in earnings growth”.
“Moreover, FX market positioning, which was very stretched on USD longs early in the year, has fallen to late 2014 levels lately (according to IMM data); this suggests room for more bullish USD positions to be adopted, all else being equal”.
“As a result, now is the time to prepare for the next - and likely final - round of USD strength ahead of a September Fed hike”.
Key Quotes
“Tomorrow’s US employment report should confirm that the US labour market remains in good shape and notably we see good chances of a rebound in earnings growth”.
“Moreover, FX market positioning, which was very stretched on USD longs early in the year, has fallen to late 2014 levels lately (according to IMM data); this suggests room for more bullish USD positions to be adopted, all else being equal”.
“As a result, now is the time to prepare for the next - and likely final - round of USD strength ahead of a September Fed hike”.