FXStreet (Edinburgh) – The prospects for the greenback remain constructive, according to strategists at TD Securities.
Key Quotes
“A constructive tone was taken by the major central banks at the Jackson Hole Symposium”.
“The BOE’s Carney downplayed risks from China on the UK economy. We remain constructive on GBP on crosses but are wary of being long versus the USD”.
“If the Fed does not begin hiking until next year, we do not think the BOE wants to front-run the Fed and would instead prefer to hike in May”.
“But, we view risks around the Fed and BOE hiking dates as very fluid”.
“Despite the flush in USD longs last week as a result of the market turmoil, that may set up a more constructive environment to own USD versus selective currencies such as commodities”.
“We are most bearish the CAD followed by NZD and AUD though speculative positioning suggests there may be upside risks to kiwi”.
(Market News Provided by FXstreet)