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5 May 2015
DXY seen lower in the near term – Westpac
FXStreet (Edinburgh) - Strategists at Westpac see the greenback, measured by DXY, retreating to the 93.00 area in 1-month view.
Key Quotes
“The USD index hit our 96.0 one month target ahead of schedule and looks set to probe lower still in coming sessions, as key supports give way amid a dearth of constructive domestic growth signals, no fresh impetus for USD bulls from the FOMC and ongoing firming in key commodity prices”.
“Few will quibble that one time negatives held back Q1 growth (at least in part) but as yet the latest signals for April do not suggest that growth is roaring back from Q1's stall. These same signals for April, mostly confidence gauges, if anything flag downside risks to expectations for a decent 215k April jobs gain”.
“We trim our 1mth USD target from 96 to 93, all the while sticking with a bullish 3mth and beyond prognosis”.
“Response to numerically significant resistance at 100.00 has been an impulsive rejection, implying a likely multi-week / month decline, initially towards 90.00/92.00”.
Key Quotes
“The USD index hit our 96.0 one month target ahead of schedule and looks set to probe lower still in coming sessions, as key supports give way amid a dearth of constructive domestic growth signals, no fresh impetus for USD bulls from the FOMC and ongoing firming in key commodity prices”.
“Few will quibble that one time negatives held back Q1 growth (at least in part) but as yet the latest signals for April do not suggest that growth is roaring back from Q1's stall. These same signals for April, mostly confidence gauges, if anything flag downside risks to expectations for a decent 215k April jobs gain”.
“We trim our 1mth USD target from 96 to 93, all the while sticking with a bullish 3mth and beyond prognosis”.
“Response to numerically significant resistance at 100.00 has been an impulsive rejection, implying a likely multi-week / month decline, initially towards 90.00/92.00”.