OctaFX | OctaFX Forex Broker
Open trading account

DXY seen around 93.00/94.00 by year-end – Westpac

FXStreet (Edinburgh) - In the opinion of strategists at Westpac, the greenback – tracked by the US Dollar Index – could slip towards the 93.00/94.00 band by end of 2015.

Key Quotes

“USD vulnerable to yet more downside near term, the currency overvalued vis-à-vis recent trends in yield spreads and risk premia metrics”.

“Yield spreads on a DXY weighted basis suggest the USD index is a good 1.5-2.5 big figures overvalued while the VIX and other vol metrics suggest the USD has decent downside catch up potential vs an array of EM currencies”.

“That, along with near term downside risks to US data emanating from the recent tightening in financial conditions flag a rocky near term USD outlook”.

USD index may trade down to 93/94 into year’s end. The longer term uptrend in the USD though likely remains intact”.

“Soft data trends in the near term will be a challenge for the USD but 2016 should still see a relatively healthier growth picture emerge than many parts of the world”.

GBP/USD bounces-off 200-DMA, rises to fresh highs above 1.5370

The GBP/USD pair picked-up pace from the 200-DMA support located near 1.5344 and swung back higher to reach fresh session highs.
Read more Previous

GBP/JPY: double top on intraday charts?

The GBP/JPY pair recovered from 183.28 to make a failed attempt to take out offers at the daily high of 183.76 levels, thereby forming a double top on the intraday charts.
Read more Next
Start livechat