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USD Consolidates – TD Securities

FXStreet (Barcelona) - Shaun Osborne and Martin Schwerdtfeger, FX Strategists at TD Securities, see the USD trading a little softer overall on the day in terms of the DXY’s performance, while most major currencies post small gains versus the big dollar.

Key Quotes

“The narrowing consolidation range in place in the DXY since the start of November should—sooner or later—give way to a more dynamic phase of market movement—most likely higher.“

“What the catalyst for the move will be remains to be seen; US yields are holding in a range and, on the day, Fed and ECB speak has the potential to attract the market attention, but perhaps not spark much appetite for fresh and aggressive positioning. Ditto for weekly claims and the JOLTS survey, even if these numbers support the impression of a better labour market.”

“Friday’s US retail sales and Monday’s (Sunday evening ET) Japanese GDP data may trigger a little more interest, especially the latter, given the ongoing speculation about PM Abe getting ready to postpone the VAT tax hike of Oct 2015.”

“From a positioning point of view, we want to buy into modest USD dips versus the majors. For instance, we would buy USDJPY on a move lower into the mid/upper 114s.”

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