FXStreet (Edinburgh) – In the view of Currency Analyst at BTMU Lee Hardman, the USD upside remains on the right footing in the near term.
Key Quotes
“The US dollar derived some modest support yesterday from comments from St Louis Fed President Bullard who stated that he sees more than a 50% chance of the Fed raising rates in September”.
“He believes that it is prudent for the Fed to get rates off zero and that it has to start thinking ahead about interest rate policy”.
“The US economy was described as being much closer to normal than it has been in the past five years”.
“He also downplayed external risks from gyrations in China’s stock market, and risks from Greece were seen as behind us”.
“St Louis Fed President Bullard is not a voting FOMC member this year although his views highlight that the risk of an earlier rate hike from the Fed in September maybe larger than current market expectations”.
“We continue to expect the US dollar to strengthen further in the nearterm heading into the first Fed rate hike”.
(Market News Provided by FXstreet)