USD keeps the constructive outlook – Westpac

By FXStreet FXStreet (Edinburgh) – Strategist at Westpac Richard Franulovich has reiterated the constructive outlook around the greenback.

Key Quotes

“Fed March hike odds have understandably taken a hit (now down to a 37% probability) as US financial conditions tighten and the fall in the CNY and oil prices impart a disinflation jolt to the US”.

“But US housing, the services sector and the labour market – the key to gauging US inflation and growth risks – remain relative bright spots and Fedspeak so far in early in 2016 gives no real hints that any Fed officials are turning weak kneed”.

“Our US data surprise index is at depressed levels that suggest pessimism on the US economy may be getting ahead of itself too. DXY longs into 98.0 still very appealing”.
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Source:: FX Street