Back
25 Aug 2014
Yellen boosted the DXY – Danske Bank
FXStreet (Edinburgh) - Lars Christensen, Chief Analyst at Danske Bank, sees the likehood of further USD strength.
Key Quotes
“The DXY index strengthened on Friday as Fed chairman Janet Yellen’s speech at the Jackson Hole conference was interpreted as hawkish”.
“In our view, her speech was balanced with no major surprises but the market had expected a dovish tone from Yellen”.
“Bottom line is that the market is keen to use excuses to buy the USD and a slightly more hawkish Yellen was enough”.
“We expect the JPY and CHF to underperform near term, as the US money markets price in earlier Fed hikes, while the SNB and BoJ may be forced to ease further”.
“While positioning and short-term technicals warn of an USD correction, fundamentals point to further strength. We expect USD strength to continue this week”.
“Draghi’s relatively dovish comments over the weekend – combined with continued worries about the situation in Ukraine - strengthen the case for further weakness in the EUR”.
Key Quotes
“The DXY index strengthened on Friday as Fed chairman Janet Yellen’s speech at the Jackson Hole conference was interpreted as hawkish”.
“In our view, her speech was balanced with no major surprises but the market had expected a dovish tone from Yellen”.
“Bottom line is that the market is keen to use excuses to buy the USD and a slightly more hawkish Yellen was enough”.
“We expect the JPY and CHF to underperform near term, as the US money markets price in earlier Fed hikes, while the SNB and BoJ may be forced to ease further”.
“While positioning and short-term technicals warn of an USD correction, fundamentals point to further strength. We expect USD strength to continue this week”.
“Draghi’s relatively dovish comments over the weekend – combined with continued worries about the situation in Ukraine - strengthen the case for further weakness in the EUR”.