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13 Aug 2013
Flash: USD strength continues to dominate FX ahead of September Fed – BMO Capital Markets
FXstreet.com (New York) - FX price action was modestly skewed towards USD strength amidst very low volumes and thin trading conditions, suggests Greg Anderson at BMO Capital Markets.
Key quotes
“Importantly, this USD strength comes on the heels of a week in which Fed-speak, on balance, seemed biased towards Fed tapering rather than Fed stimulus – out of four Fed speakers last week (Fisher, Evans, Pianalto and Lockhart), all four (including arch-dove Evans) mentioned the risk of Fed tapering before year-end.”
Taken at face value, these comments appear to have a lot of re-orientating value, in the sense that their timing has punctuated what appears to have been a modest overshoot to the downside in the USD, and helps maintain financial markets at large on an overall course for Fed tapering in a non-hawkish manner.”
Key quotes
“Importantly, this USD strength comes on the heels of a week in which Fed-speak, on balance, seemed biased towards Fed tapering rather than Fed stimulus – out of four Fed speakers last week (Fisher, Evans, Pianalto and Lockhart), all four (including arch-dove Evans) mentioned the risk of Fed tapering before year-end.”
Taken at face value, these comments appear to have a lot of re-orientating value, in the sense that their timing has punctuated what appears to have been a modest overshoot to the downside in the USD, and helps maintain financial markets at large on an overall course for Fed tapering in a non-hawkish manner.”