FXStreet (Córdoba) – Analysts from TD Securities explained that they remain strategically neutral on the US dollar but note that benign policy expectations suggest modest upside pressure.
Key Quotes:
“Markets had lowered the odds of a 2015 rate hike considerably, placing steepening pressure on the curve a s the Fed’s decision function has become less certain. Volatility has abated somewhat, but yields have remained lower as heightened prospects of additional ECB and BOJ easing maintain bullish pressure on already low global rates.”
“The USD’s near-term fundamentals remain mixed amid Fed dithering and a slowing US economy. Technically, things are looking better on some fronts, suggesting positive momentum could draw in buyers chasing strength into year-end.”
“We remain strategically neutral the USD and look for choppy price action overall to continue until clarity emerges on the Fed path, but expectations of future tightening look increasingly priced in.”
(Market News Provided by FXstreet)