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31 Mar 2015
USD strength to gain additional support – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, views that the strengthening cyclical momentum in the US economy should provide the dollar strength additional support in the coming quarter.
Key Quotes
“We remain optimistic that economic growth and personal consumption growth will both begin to rebound in Q2 with weakness in Q1 likely temporary.”
“The combination of low inflation and firm income growth should result in stronger growth ahead especially if the recent build up in savings begins to ease as well.”
“Strengthening cyclical momentum for the US economy should provide additional support for a stronger US dollar in the coming quarter.”
“It was interesting that Fed Reserve Vice Chairman Fischer stated overnight that he places more emphasis on the employment data which is more reliable than output data. He noted that “I have a firm belief that the employment data are significantly better than the output data”, and that “I think there is a significantly positive probability that the GDP data may not be accurate”.”
“If his view is correct and the output data is underestimating the true strength of the US economy it could provide additional support the US dollar. The comments will further increase investor focus on the release of the non-farm payrolls report on Friday.”
Key Quotes
“We remain optimistic that economic growth and personal consumption growth will both begin to rebound in Q2 with weakness in Q1 likely temporary.”
“The combination of low inflation and firm income growth should result in stronger growth ahead especially if the recent build up in savings begins to ease as well.”
“Strengthening cyclical momentum for the US economy should provide additional support for a stronger US dollar in the coming quarter.”
“It was interesting that Fed Reserve Vice Chairman Fischer stated overnight that he places more emphasis on the employment data which is more reliable than output data. He noted that “I have a firm belief that the employment data are significantly better than the output data”, and that “I think there is a significantly positive probability that the GDP data may not be accurate”.”
“If his view is correct and the output data is underestimating the true strength of the US economy it could provide additional support the US dollar. The comments will further increase investor focus on the release of the non-farm payrolls report on Friday.”