FXStreet (Edinburgh) – Strategist at TD Securities Ned Rumpeltin has reiterated the good prospects for the greenback in the next months.
Key Quotes
“The USD continues to extend its gains against most major currencies. Gains have been bolstered by the overall sense of risk aversion cutting across markets while the greenback continues to draw support from December’s Fed rate hike”.
“The US macro backdrop remains mixed, however, with December’s robust employment report offset by weakness elsewhere”.
“While some sectors have deteriorated to the point where recession signals can be seen, our overall view remains fairly upbeat. We expect the slowdown in momentum should prove temporary and see growth rebounding to an above-trend pace in Q1”.
“For now, however, we retain our broadly bullish outlook on the USD and the DXY dollar index”.
“Ultimately, we think this phase of the rally could resolve itself around the 104 mark, but we are less certain whether the advance toward that potential peak is underway”.
“A move below 97.80 suggests further consolidation lies ahead, while 100.50 remains the door to the topside”.
(Market News Provided by FXstreet)