FXStreet (Edinburgh) – In the opinion of strategists at TD Securities, the upside bias in the greenback remains unchanged, albeit it could be more selective.
Key Quotes
“The US economic recovery is back on track, with the pace of GDP growth rebounding after the weather-induced setback earlier this year. The rebound in activity will be underpinned by firming domestic fundamentals, which should provide the platform for the transition to a self-sustaining recovery”.
“Consolidation since March looks to be nearly over. With EZ risks diminished, the focus is back on the Fed. An explicit signal for a Fed hike in September is near-term USD positive, but USD strength is looking increasingly mature from a longer-term point of view”.
“We prefer to be selectively long vs. ccys where central banks may be actively easing. With a hawkish BOE, the end is near for a singular focus on USD strength”.
(Market News Provided by FXstreet)