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1 Apr 2014
USD remains on the back footing - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, observes the greenback is extending its bearish tone.
Key Quotes
"The US dollar remains on the defensive in the near-term especially against emerging market currencies whose relief rebounds have gathered further momentum. The so called “fragile five” of the Brazilian real, Indian rupee, Turkish lira, Indonesian rupiah, and South African rand are all amongst the top performing currencies since the end of February highlighting the recent turn around in investor sentiment towards emerging markets."
"The rebound in emerging market currencies and improvement in investor risk sentiment was supported yesterday by reassuring comments from Fed chair Yellen who stated that the “considerable slack” in the US labour market is evidence that the Fed’s unprecedented accommodation will still be needed for “some time”. Still the comments do not change the less dovish Fed policy outlook presented at the last FOMC meeting which revealed a faster pace of rate hikes are likely in the years ahead."
"US yields continue to grind higher but will need further evidence of strengthening economic growth momentum to provide more support for the US dollar. The US dollar was also undermined yesterday by the drop in the Chicago PMI in March, although the upcoming releases of the ISM surveys and non-farm payroll report for March will prove more important for US dollar direction in the near-term."
Key Quotes
"The US dollar remains on the defensive in the near-term especially against emerging market currencies whose relief rebounds have gathered further momentum. The so called “fragile five” of the Brazilian real, Indian rupee, Turkish lira, Indonesian rupiah, and South African rand are all amongst the top performing currencies since the end of February highlighting the recent turn around in investor sentiment towards emerging markets."
"The rebound in emerging market currencies and improvement in investor risk sentiment was supported yesterday by reassuring comments from Fed chair Yellen who stated that the “considerable slack” in the US labour market is evidence that the Fed’s unprecedented accommodation will still be needed for “some time”. Still the comments do not change the less dovish Fed policy outlook presented at the last FOMC meeting which revealed a faster pace of rate hikes are likely in the years ahead."
"US yields continue to grind higher but will need further evidence of strengthening economic growth momentum to provide more support for the US dollar. The US dollar was also undermined yesterday by the drop in the Chicago PMI in March, although the upcoming releases of the ISM surveys and non-farm payroll report for March will prove more important for US dollar direction in the near-term."