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5 Feb 2015
DXY’s fall only a temporary retracement – Scotiabank
FXStreet (Barcelona) - According to Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, the DXY’s 2% fall since its previous month's high doesn’t signal towards a reversal, further adding that USD still remains supported by fundamentals and flows.
Key Quotes
“Since its 95.53 high on January 26, 2015, the DXY USD index has lost 2%, with the majors of EUR, JPY up 1% and GBP up 0.7% in this period.”
“In the current environment we see this as only a retracement and not a reversal in trend.”
“Both fundamental and flow drivers continue to support a USD uptrend; with the most important”
“USD bearish risks are:
A disappointing U.S. growth profile which pushes out the Fed’s entry and path of interest rate hikes.”
The combined growth stimulus of low oil, FX depreciation and loose monetary policy (with low bond yields) spurs a broader recovery in Europe and Asia, surprising markets.”
“We expect most currencies to depreciate further against the USD in 2015, but at a slower pace than what took place in late 2014 and early 2015.”
Key Quotes
“Since its 95.53 high on January 26, 2015, the DXY USD index has lost 2%, with the majors of EUR, JPY up 1% and GBP up 0.7% in this period.”
“In the current environment we see this as only a retracement and not a reversal in trend.”
“Both fundamental and flow drivers continue to support a USD uptrend; with the most important”
“USD bearish risks are:
A disappointing U.S. growth profile which pushes out the Fed’s entry and path of interest rate hikes.”
The combined growth stimulus of low oil, FX depreciation and loose monetary policy (with low bond yields) spurs a broader recovery in Europe and Asia, surprising markets.”
“We expect most currencies to depreciate further against the USD in 2015, but at a slower pace than what took place in late 2014 and early 2015.”