FXStreet (Edinburgh) – Currency Strategist at BTMU Lee Hardman sees the greenback gaining appeal following the recent unwind of USD longs.
Key Quotes
“Atlanta Fed President Lockhart, one of the more hawkish voting FOMC members this year, spoke overnight reiterating that he still expects the Fed to begin raising rates this year”.
“However, he did display more caution over the recent appreciation of the US dollar, the devaluation of the renminbi, and the further decline in the price of oil which are complicating factors in predicting the pace of growth”.
“The negative external developments make it unlikely the Fed will raise rates in September helping to dampen US dollar strength in the near-term”.
“Position liquidation has exacerbated US dollar weakness against the other major currencies in the near-term leaving it more attractively valued as it has decoupled temporarily from relative fundamentals”.
(Market News Provided by FXstreet)