Jens Pedersen, Senior Analyst at Danske Bank, has assessed the recent performance of the greenback.
Key Quotes
“USD bulls are losing confidence as Fed Chair Yellen’s latest comments seem to undermine previous hawkish comments from other board members”.
“Indeed, in our view the dovish camp of the Federal Reserve seems to dominate with seven out of 10 voting members indicating a maximum of two hikes this year (our estimates)”.
“With US monetary policy setting focused on external developments – which now to a much lesser extent seem deemed as ‘exogenous factors’ – even a strong non-farm payroll report on Friday would most likely not be enough to trigger a renewed USD up-trend”.
“Overall the latest developments give us comfort in our long held non-consensus call of EUR/USD ending the year higher”.
(Market News Provided by FXstreet)