14 Jul 2015
Upside bias in USD remains firm – Westpac
FXStreet (Edinburgh) - In the opinion of strategists at Westpac, the greenback could resume its upside trend in the upcoming periods.
Key Quotes
“News of a breakthrough for Greece and the desperate measures in China to shore up the stock market are unlikely to bring anything more than temporary period of stability for global markets”.
“The scale of Greek capitulation and near complete surrender of fiscal sovereignty raises implementation and political risk in Greece”.
“Chinese authorities have succeeded for now in stabilising stocks but their efforts hardly boost confidence in their ability to manage the broader structural and cyclical slowing”.
“Net net we think it’s too early to sound the all clear for "risk-on".
“Chair Yellen may sound a touch more cautious given elevated global risks though we suspect her base case will still be for lift off this year”.
“That and upside risks to the US data, given that our surprise index has yet to hit a local maximum, should add to the positive narrative for the USD next week”.
“Positive short term price action amid a positive medium term momentum shift implies that the multi-month downward correction may be maturing. Weekly close above 97.78 would confirm a positive outlook”.
Key Quotes
“News of a breakthrough for Greece and the desperate measures in China to shore up the stock market are unlikely to bring anything more than temporary period of stability for global markets”.
“The scale of Greek capitulation and near complete surrender of fiscal sovereignty raises implementation and political risk in Greece”.
“Chinese authorities have succeeded for now in stabilising stocks but their efforts hardly boost confidence in their ability to manage the broader structural and cyclical slowing”.
“Net net we think it’s too early to sound the all clear for "risk-on".
“Chair Yellen may sound a touch more cautious given elevated global risks though we suspect her base case will still be for lift off this year”.
“That and upside risks to the US data, given that our surprise index has yet to hit a local maximum, should add to the positive narrative for the USD next week”.
“Positive short term price action amid a positive medium term momentum shift implies that the multi-month downward correction may be maturing. Weekly close above 97.78 would confirm a positive outlook”.